The Struggle for Skilled Tradespeople in 2024: Where have all the tradespeople gone?

In today's rapidly changing job market, the search for skilled tradespeople in industries like construction and manufacturing has become increasingly challenging. Recent reports and data highlight the growing difficulties faced by employers as they strive to fill critical positions in these sectors. From differences in wages to shifts in demographics, the recruitment of skilled labor is undergoing significant changes.

Wage Trends in Favor of Skilled Trades

The pay landscape for construction workers in the U.S. has undergone a notable transformation. Recent figures from the Associated General Contractors of America show that average hourly earnings in construction have risen to $34.96, marking a 5.9 percent increase over the year (Nov 2023). This surpasses the private-sector average of $27.90, indicating a substantial economic shift towards skilled trades.

Unprecedented Demand and Shortages

Despite attractive wage growth, the demand for skilled workers in construction and manufacturing far exceeds the available talent pool. Department of Labor data reveals a staggering 360,000 job openings in construction alone, the highest recorded for May in 19 years. Looking ahead, the U.S. Bureau of Labor Statistics forecasts a need for an additional 747,000 workers in construction by 2026—an anticipated demand that surpasses the expected supply.

In manufacturing, the scenario is similar. The Bureau of Labor Statistics reported 601,000 open positions in December, representing a three-month peak. Projections from the Manufacturing Institute warn that without significant interventions, over 2 million manufacturing jobs could go unfilled by 2030.

Demographic Changes and Hiring Challenges

One of the primary factors increasing this shortage is the demographic shift within these industries. The median age of a construction worker is now 42.5 years old, indicating an aging workforce. For every five workers retiring, only one new entrant is joining—an imbalance that threatens the industry's future.

Similarly, the Manufacturing Institute notes the ongoing struggle to attract younger workers, as many opt for college education over vocational paths. This challenge is compounded by the persistent skills gap in manufacturing, where specialized technical skills are increasingly in demand.

Recruitment in a Competitive Job Market

Recruiting skilled tradespeople has become a multifaceted challenge. According to a survey by the Society for Human Resource Management (SHRM), a striking 77% of HR professionals reported difficulty recruiting for full-time positions over the past year. Key hurdles include a shortage of applicants, fierce competition from other employers, and candidates "ghosting" during the hiring process.

Employers in these sectors face intense competition, and prolonged hiring procedures—all of which contribute to difficulties in securing qualified talent.

Strategies for Addressing the Challenges Ahead

To tackle these critical issues, industry stakeholders are exploring innovative solutions. Prioritizing positive work cultures alongside fair compensation has emerged as a pivotal retention strategy.

Upskilling initiatives are gaining momentum, with a focus on equipping existing and potential employees with the technical skills required to thrive in modern manufacturing and construction environments.

What do we do?

The shortage of skilled tradespeople in construction and manufacturing presents an urgent problem that requires proactive solutions. By addressing wage disparities, attracting younger talent through educational partnerships and apprenticeships, and investing in upskilling programs, the industry can pave the way for sustained growth and competitiveness. As we navigate the complexities of the modern job market, collaborative efforts among policymakers, educational institutions, and industry leaders will be crucial in securing a vibrant future for skilled trades.