October 6, 2023 Help Wanted: Construction Workers in High Demand

The infrastructure industry faces its highest level of unfilled job openings ever recorded against a backdrop of a severe labor shortage.

By Ben Breen, Global Director Construction, Project Management Institute

According to recent research, construction firms must attract an estimated additional 546,000 workers beyond their regular staffing needs in 2023 just to meet the current labor demand. This increase in demand is in part due to the job creation and economic stimulation stemming from the Infrastructure Investment and Jobs Act (IIJA), a $1.2 trillion initiative to upgrade the nation’s roads, bridges, water systems, electrical grid, and broadband access infrastructure. And with nearly one in four construction workers over the age of 55 and nearing retirement, young workers are in high demand, but too few are currently entering the skilled trades.

The construction industry is at a crossroads. If this is not fixed, the industry will not only have a labor and skills shortage, but this shortage will also produce a broader economic ripple effect. Accounting for roughly 13% of the global GDP, McKinsey estimates construction is the largest industry in the world and an important indicator of economic health. Failing to correct this labor and skills shortage will majorly impact the economy and curtail an ever-growing number of construction projects – from manufacturing plants to clean energy facilities, and infrastructure – all of which are critical to our everyday lives.

The good news: construction professionals are in demand and in the driver’s seat of their careers in every department, from laborers and tradespeople to engineers and project managers. And demand shows no sign of slowing down. According to Project Management Institute’s (PMI) latest Talent Gap report, the number of project management-oriented roles in construction and manufacturing will grow over 13% between 2019 and 2030. And the U.S. Bureau of Labor Statistics shows construction employment continues to trend upward, adding 22,000 new jobs in August 2023.

With additional projects from the IIJA on the way, this creates a huge opportunity for the industry, but what should be done to ensure we close the labor and skills shortage to attract the next generation of construction talent?

The impact of a labor and skills shortage and how to attract young talent

Without adding new talent with the necessary skills needed for success, the future of the construction industry remains unclear. In fact, research has found that construction projects already typically take 20% longer than scheduled to complete and are up to 80% over budget. If you add an inability to meet current labor demands alongside a lack of skilled workers, these figures are sure to increase.

But industry leaders are aware of this. We know the race for talent in the construction industry is intense. Some leaders even note the “shortage has reached crisis level.”

According to a recent Construction Spending Report from the U.S. Census Bureau, the upward trend in construction employment is driven by recent strength in housing starts, residential building permits, new home sales, and construction spending. To continue to see this growth industry-wide and alleviate stretched teams – and their construction projects – we must continue to encourage learning and development among young workers by making the tools and resources they need more accessible. Whether this is through employer reimbursement for apprenticeships, courses, and certifications or through a professional membership organization where they can build their knowledge and hone their skillsets, young workers are likely to pursue these careers when they know their employers value them, their skillsets, and their career journey. It’s also important that industry leaders advocate for the construction profession and convey that it is an exciting, lucrative, and resilient career path for young professionals.

The ever-expanding role of project management in construction

Construction is not only one of the largest industries in the world, but also one of the project management profession’s largest sectors and is poised to continue to grow.

So, what role do project managers play in construction? Most construction projects are complex in nature. They involve a surplus of logistics, are subject to a variety of often complex and intricate regulations and bring together professionals with a wide array of highly specialized teams with differing skills. This makes the construction industry a prime candidate to benefit from project management knowledge.

For construction workers, obtaining the right technical and power skills – like communication and collaboration – to bring teams together to execute these projects is critical. This includes understanding the principles of effective communication among various stakeholders, learning how to design and execute ambitious, large-scale projects, and identifying ways to minimize risk – all important factors for leading successful projects.

Why upskilling will be key to lessening the talent shortage

It’s evident that today’s technology is rapidly changing how work gets done across the construction industry. Traditionally, construction has been one of the least digitized industries and has often lagged behind in productivity and R&D investment. However, innovations in robotics and digitization are reshaping the industry, and we need skilled workers who know how to leverage this technology to drive project success forward.

Reskilling and upskilling – in terms of both technical skills and power skills – will be critical in addressing the construction industry’s staffing needs. For those looking to build effective and efficient project teams, certifications and training resources like the Construction Professional in Built Environment Projects (PMI-CP)™ certification from PMI can offer solutions. The PMI-CP certification is designed to equip project managers in the engineering and construction fields with the skills they need to bring large, complex projects to life. 

While the construction industry currently navigates the challenges posed by labor and skills shortages, there are many reasons to be optimistic about the future success and growth projected to come. It’s important that we both encourage and prepare the young workers of today, for tomorrow. Through reskilling and upskilling and ensuring our project teams are well-equipped to navigate the construction projects that lie ahead, we will be well-positioned to drive industry growth forward and attract the next wave of project visionaries needed to build our future.

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