Companies that build buildings, highways and utilities in North Carolina say ongoing problems finding workers this summer have caused project delays.
Of the 27 contractors in the state surveyed by the Associated General Contractors of America, more than half (59%) attributed development delays to labor shortages. The annual survey of workers, released Wednesday, collected results for July and August. Most North Carolina respondents have more than 50 employees, while five said they have more than 500.
Nearly every company in North Carolina reported having openings for hourly positions, and four out of five reported open positions for salary positions. This isn’t a new trend; about three-quarters of North Carolina companies said it will be just as hard to find talent in 2023.
When asked what barriers kept them from filling these jobs, contractors said the top two reasons were that new hires quit before or shortly after they were hired and an overall shortage of qualified workers. This reflected the results of the national survey, which included 1,496 U.S. contractors.
“The most likely way to address the construction labor shortage is for the federal government to implement better workforce policies,” Jeff Shoaf, the association’s CEO, said at a briefing Wednesday.
The association said such policies should include greater investment in workforce development and expanded opportunities for legal immigration. In a summary analysis, AGC of America said, “it costs more, takes longer, and there is less certainty that a project will start on time because our country has not encouraged students to pursue careers in construction or allowed people to enter the country legally to work in construction.”
Associated General Contractors of America conducted the research with Arcoro, a construction software company.
The analysis called on the White House and Congress to allocate more money to the Workforce Innovation and Opportunity Act when the program is reauthorized this year. Another step the association would welcome is for federal leaders to allocate more money to “school construction education programs” through the Perkins Vocational and Technical Education Act.
Associated General Contractors of America bills itself as the nation’s oldest and largest construction trade group, with more than 27,000 companies.
In June, the association and the center-left think tank Progressive Policy Institute published a joint report on how the federal government prioritizes postsecondary education and workforce development funding. The report argues that federal and state money is funneled toward four-year college programs while technical training skills are relatively overlooked. The authors point out that more Americans are never getting a bachelor’s degree, but would still benefit from more training.
“Americans used to be able to get good jobs that provided a family income with just a high school diploma,” the report said. “In today’s increasingly technology- and data-driven economy, most jobs require at least some postsecondary education.”
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