Homebuilding is reportedly not showing robust growth despite the good demand. The problem: lack of skilled workers to do the job.
In a report, CNBC said that single-family home construction dipped to a three-month low in June, which should have been the busiest time for homebuilding. Incidence of labor shortages nationwide is very high, according to builder's industry trade groups, the report said.
Quoting an analysis by the Associated General Contractors of America, the report said that unemployment in the construction industry fell in June to the lowest level since 2001. The reason is contractors cannot find enough qualified workers to meet growing demand.
"Expanding job opportunities throughout the economy make it increasingly difficult for contractors to find experienced construction workers," said Ken Simonson, the association's chief economist. "This scarcity shows up in record workweeks for craft workers and flattening of employment totals despite higher construction spending."
McGuinn Homes CEO Wade McGuinn sees two reasons for the shortage: first, trades people went into different industries because there was slow business before; and second, because of the limitations set by immigration laws. "We've lost about two-thirds of our Hispanic and South American population in South Carolina, and that has had a profound effect on labor," said McGuinn.
Local builders were affected the most because they make up the majority of single-family construction in the U.S. However, even a few years back, the lack of skilled workers has reportedly been felt already.
In a 2013 report, Forbes said that skilled workers have been the hardest to look for among the segments of the workforce. The report also noted the aging workforce in the skilled trades segment. It said that in 2012, 53 percent of skilled-trade workers in the U.S. were 45 years and older, and 18.6 percent were between the ages of 55 and 64.
Aside from the older skilled-trade workers, employers also said that the workers lack certain skills. It noted that American high schools largely focus on preparing students for four-year colleges and not vocational school.
