The shortage of workers has put a strain on construction companies, which are offering better wages and conditions to attract and retain their employees now that federal funds from the infrastructure law promoted by President Joe Biden begin to flow, according to The Wall Street Journal.
The law, approved in November by Congress with bipartisan support, will allocate billions of dollars to projects across the country to build and renovate roads, bridges, ports, rail transit, drinking water, the power grid, broadband internet and plus.
It will also replace lead pipes and build electric vehicle charging stations, among other projects.
A worker at a building under construction in Connecticut in May 2020. Mary Altaffer / AP
The shortage of workers in the construction sector is due to a combination of factors, according to the aforementioned newspaper: the historically low level of unemployment;
the recovery of the real estate sector after the COVID-19 pandemic;
and the 600,000 million dollars allocated to works within the infrastructure law.
According to the firm Moody's Analytics, the law will have its maximum impact in the fourth quarter of 2025, by which time some 872,000 jobs will have been created thanks to the projects developed in the country.
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But even as projects begin to flourish with these new funds, the construction workforce is aging and many workers are already beginning to retire.
The young people who could relieve them consider this sector dangerous and complicated, since it does not always offer the same flexibility or remuneration to work from home or an office with air conditioning, as Joseph Kane, a researcher at the Brookings Institution, explained to the newspaper.
The median wage for production workers rose 6.2% in March from 2021, the biggest increase since 1982, according to data from the Bureau of Labor Statistics and the Associated General Contractors of America cited in a report by IMF Corp.
Construction wages are rising slightly faster than other sectors, said Priya Kapila, a partner at the firm, which analyzes compensation and salary rewards.
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“Wage pressure, especially in the construction sector, responds to a limited offer.
That has led companies to say: 'What else can we do?' added the aforementioned analyst.
For now, more companies are trying to improve their own work culture to satisfy employees, retain them and find more talent.
Some of the changes introduced cover sick leave or offer retirement plans such as 401(k).
In the southern states, the weather is a key element to attract workers: employers guarantee 12 months of work in the sun to employees, accustomed to activity in the Northeast and Midwest being paralyzed by inclement winter.
Companies in remote areas also offer bonuses and accommodation, aware of how difficult it is to find local labor.
The Central Florida Transport company, for example, has created a position to help its truck drivers with tasks that are difficult to complete during their work day, such as scheduling medical appointments or finding a loan officer.
"We wanted to do everything possible to help solve problems because we cannot afford to lose any drivers," explained its vice president, Myron Bowlin, to The Wall Street Journal.
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In the opinion of the Secretary of Transportation, Pete Buttigieg, emphasizing that construction offers well-paid jobs that do not require a university degree opens the door for more women and people of color to be hired, generally underrepresented in this sector.
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"We can only get [do] this level of work [on construction projects] if we don't leave any talent on the table," Buttigieg was quoted as saying by The Wall Street Journal.
