As the construction industry grows and changes, so does the type of labor that is needed. According to the National Association of Home Builders’ Eye On Housing blog, the makeup of the construction labor force over the last two decades has shifted to encompass more computer, engineering and science roles. From 2005 to 2022, the share of tradesmen declined from 71% to about 61%. At the same time, the share of skilled computer and science occupations doubled, and the share of management and business occupations increased by 60%.
The results are noteworthy, particularly given a recent focus on relatively flat productivity growth in the construction sector. A growing count of engineering/tech workers would, on its face, suggest a boost to productivity. However, a decline for the share of workers associated with the trades could suggest declining productivity. Indeed, more workers in management and business occupations could be another impact of the rising regulatory burden associated with building. These findings and possible impacts deserve additional research attention given the need to supply more attainable housing to the market.
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