Similar to other industries, the ongoing labor shortage crisis in the U.S. is detrimentally impacting construction activities in both the residential and commercial sectors. According to the Bureau of Labor Statistics, the turnover rate for the construction industry since 2021 has risen to 56%, and, according to a July 2023 Associated Builders and Contractors and Markenstein Advisors report, the unemployment rate for construction is roughly four times the national average.

So where did all the workers go? During the height of the 2020 COVID-19 pandemic and for the next few years, the country experienced what most people are calling “The Great Resignation.” Many people took jobs with better pay and better alignment with their values. Approximately 40% started a new business. Many elected to become stay-at-home parents, forgoing a paycheck to raise their families while the other spouse works—this was driven in part by the rising costs of childcare. About one in every four Baby Boomers retired. Others took part-time employment, entered military service, or left the workforce due to disability or injury.

Reprinted courtesy of Jason Feld, Kahana Feld and Chris Bates, Kahana Feld

Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Bates may be contacted at cbates@kahanafeld.com