Read any newspaper or listen to any news report and you'll hear information about the economic downturn of 2008. With houses already glutting the market, the question is, ''What does this mean for construction jobs today and in the near future?''
While all jobs are dependent to some degree on the state of the economy, that seems especially true with construction jobs. The foundation of the construction industry is the building of new homes, apartments, offices, and other residential and commercial properties. During tough economic times, however, the demand for these new structures can decrease dramatically.
These problems can be exacerbated by two additional quirks of the construction industry. According to the US Department of Labor, nearly 65% of construction companies employ fewer than five individuals. That means when times get tough these companies do not have the ability to reduce manpower in order to cut costs and stay afloat. The other quirk is the large number of freelance construction workers in the industry. They may have better opportunities than construction companies because they have lower overhead costs and can charge less for their services in many cases.
The Department of Labor’s statistics for 2006 make construction jobs appear to be very promising. The industry was then considered one of the biggest in the country, and had been growing consistently every year, which was unusual for most industries. By 2010, the industry was expected to grow by 16%, and future construction job opportunities were considered to be plentiful because so many of the Baby Boomers would be retiring from the field in the next few years.
While some parts of the country are definitely seeing the reverse of that growth, other parts are eager to fill an abundance of construction jobs.
The Outlook for Florida
One of the states without such a rosy outlook for the construction industry is Florida. This state has seen a major downturn in the housing market, which had been booming for years. According to the Florida Agency for Workforce Innovation, more than half of the jobs lost in the state during the last 12 months have been construction jobs.
Orlando is one of the areas that have been hit hard by the housing problem. The number of single family housing starts has fallen more than 50% since this time last year. Right now, the city has enough homes to meet the demand for the next seven months, which could suggest a further downturn in construction jobs in the area.
Despite these problems, Florida still has some lucrative construction jobs available for experienced professionals in the industry. People with project management experience, for example, are still very much needed in the area. Estimators and home inspectors are also needed in the state. These types of construction jobs are some of the best paying, but they do require specialized skills and/or experience. Entry level construction jobs will be harder to track down.
The Outlook for California
While the Sunshine State was one of the hardest hit by the downturn, California wasn’t far behind. For years, housing prices had soared and construction jobs had been easy to come by thanks to the increasing demand for new offices, shopping areas, residential areas, and house flippers. Now construction jobs are accounting for a big chunk of the state’s high unemployment numbers.
Despite the bad news for illegal immigrants, the reduction in their population in the state may help improve the situation for construction workers. Without their available labor, other workers may be able to secure positions that were not previously available.
As in Florida, experienced individuals in this field will definitely fare better. Project managers are also in demand in California, as are estimators and supervisors. The good news is these are lucrative positions; the bad news is the prospects for less experienced construction workers may not be as good.
More Positive Outlooks in the US
While Florida and California construction jobs have largely been at the mercy of the present economic situation, other cities have fared well.
In Joliet, Illinois, for example, the city is about to start construction on a new rail facility. During the next 10 to 15 years, the facility is going to require almost 6,000 construction jobs to be filled. Plus, many workers in the area are going to be working well into 2010 on the massive building project, which has been praised for getting construction workers and others back to work.
In New York as well, construction jobs have continued to be in demand. That may be, in part, due to the new Yankee stadium being built in the Bronx. The project called for approximately 5,900 construction jobs, which will be filled until the massive stadium is completed.
Conclusion
Although the overall picture for construction jobs in the United States looks glum, there may be some good news. ADP released a report which suggested that construction jobs were not likely to decline any further. That may not be much relief for the 350,000 people who are without work throughout the country, but it does mean things can begin to turn around for the industry, albeit slowly.
The next few months will continue to be difficult for less experienced construction workers, but for freelancers who are willing to travel to cities such as New York and Joliet, where major building projects are underway, the worst may be over. For everyone else, recovery will be slow.
