For the last three years, HBI has commissioned the National Association of Home Builders (NAHB) Economics Department led by Dr. Rob Dietz to create a biannual Construction Labor Market Report. The health of the labor market is key to the outlook for monetary policy, interest rates and housing affordability. A return to stable inflation readings is dependent on gains for labor productivity (via worker training), labor recruitment and reductions for shelter price growth. The residential construction labor workforce lies at the center of these economic and social policy objectives via its connection to adding attainable housing that will reduce shelter inflation.
Construction workers are needed to build more affordable houses. Home Builder’s Institute released our Spring 2024 HBI Construction Labor Report which found that:
- Building more houses keeps inflation (price increase) for houses under control.
- To build more houses, they need more construction workers (around 723,000 per year).
- Right now, there are about 8.2 million construction workers, but they need even more.
- There are a lot of open construction jobs (over 400,000) so it’s a good field to get into for a job.
- Construction industry wages have increased 5% over the last year.
- Construction is a good fit for people of all backgrounds: women, veterans, immigrants (especially Hispanics) and especially younger people (age 25 and under).
There’s A National Housing Shortage
The report highlights a growing need for construction workers, especially with single-family home building on the rise. Think about it: more houses mean more jobs building them!
Let’s take a deep dive into the Spring 2024 HBI Construction Labor Report and see what’s going on.
Technology and Remote Work
Technology is changing the game in construction. Think remote work, drones, robots and fancy computer programs. These tools are making it easier and safer to build stuff. Companies that use them are getting things done faster and saving money, too.
Not Enough Workers
But it’s not all sunshine and rainbows. There’s a problem: not enough skilled construction workers. Imagine trying to build a house without enough people who know what they’re doing. It’s tough! The report says this is a big challenge for construction companies. But it’s also a chance for them to get creative and train more people or use cool gadgets to help out.
Women In Construction
Women made up 10.9% of construction employment in 2022, a big increase from 9.1% in 2017.
Being Eco-Friendly
Here’s some good news: more and more construction folks are going green. That means they’re using materials and methods that are good for the planet. Think about buildings that use solar power or are made from recycled stuff. It’s not just about being nice to the Earth; it’s also a smart move for business.
Rules, Rules, Rules
Of course, there are always rules to follow. The report talks about national employment trends and how the construction industry compares. It’s a lot to keep track of, but it’s good news for the building industry.
Key Takeaway
The Spring 2024 HBI Construction Labor Report gives us a peek into what’s happening in the construction world. It’s a mix of challenges and opportunities. By paying attention to reports like this, construction folks can keep building a better world, one brick at a time.
Watch: Ed Brady, President and CEO of HBI and Dr Rob Dietz, Chief Economist for NAHB, Discuss the Spring 2024 HBI Construction Labor Report
Want to learn more? Check out the full HBI report for all the details.Thinking about a career in construction? This report suggests it’s a great time to get started. There’s high demand, competitive wages and a diverse workforce. If you’re looking for a stable career path, building the future might be the perfect fit!
