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Diversity in Construction Resource Library

04 Jul 2024

Skilled construction worker shortage continues across Illinois

Skilled construction worker shortage continues across Illinois

The construction industry in Illinois, like much of the United States, is facing a significant challenge: a shortage of skilled workers. This issue has been growing over the past few years and shows no signs of abating. For those in the construction field, understanding the dynamics of this shortage and how it impacts the industry is crucial. Let’s dive into the details of the workforce gap, its implications, and potential strategies to address it.

Insights at the National and State Level:

A report by the Associated Builders and Contractors (ABC) reveals that the U.S. construction industry must attract around 501,000 additional workers in 2024, in addition to the regular hiring pace, to meet labor demands. This shortage is not limited to the national level; it has a significant impact on Illinois, where the need for skilled construction professionals is particularly critical.

The aging workforce stands as one of the primary causes of this shortage. With almost one in four construction workers aged 55 or older, retirements play a significant role in reducing the pool of available skilled workers. As experienced workers leave the industry, they take with them valuable skills and knowledge.

Another contributing factor is the insufficient number of young people entering the construction trades. Cultural and societal influences often steer young adults towards pursuing college degrees rather than vocational training, resulting in a smaller influx of new entrants in skilled trades like carpentry, electrical work, and plumbing.

Economic and Industry Trends:

The shortage is further exacerbated by economic factors, including fluctuating construction spending and increased demand for infrastructure projects. Major endeavors such as new residential developments, commercial buildings, and infrastructure upgrades require a substantial workforce that is currently lacking.

A DataBid blog titled "Construction Forecast for 2024 for Illinois" presents a mixed outlook for Illinois' contractors. While there is optimism regarding sectors like manufacturing and infrastructure, concerns persist for commercial and office constructions. The Federal Reserve's interest rate policies, fluctuating material costs, and the shortage of skilled construction workers add complexity to the sector's outlook.

The shortage of skilled workers results in project delays and increased construction costs. With fewer workers available, projects take longer to complete, and the demand for skilled professionals drives up labor costs. This not only affects construction companies but also has broader implications for the economy, leading to delays and cost overruns in infrastructure projects.

Find out more: Chicago Construction News

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