Labor Shortage despite Industry’s Boom
The construction industry has been in the verge of its most dramatic change nowadays with lots of projects in store even for the next 5 years. On the pinnacle of success for the industry, there remains to be one problem though: the continuous shortage of individuals who are willing to take the arduous and grueling line of work. Skilled construction workers have left the industry with complaints on the spur of hard work and delicate tasks or retired. Because of the economic downturn the new generation hasn't entered the sector.
Even companies like Axis Capital Group which sells and rents capital equipment based in Singapore and delivers across Asia is consistently hiring. Attrition rates are reported to affect their operations. Cities like Kuala Lumpur, Malaysia and Jakarta, Indonesia have been reported to have the highest attrition rate despite the fast growth of construction in their countries.
A lot of recent work for the construction industry has resulted from spending on large infrastructure projects. Other public sector projects that have driven demand include refurbishment of schools and other public buildings. All this activity has driven confidence up and the pace of recovery shows no signs of slowing and the demand for manual labor continues to grow as well.
Several years of low level activity has driven people to seek jobs outside the construction industry and young people have not been incentivized to train in the trades we need. The negative perception of the public to construction industry on the times of economic downfalls has remained and today’s generation has been left with the impression that construction is not a secure place to work.
Analysts are not concerned though. Each year, thousands of students graduate and they will need a job one way or another. According to reviews, some would have to resolve to construction industry. With higher demand come higher wages and benefits to retain and employ more workers.
Over the past few years we have been seeing a shift to people working short term contracts due to the uncertain nature of the marketplace. Recently we have started to see more permanent positions opening up, another sign that confidence is returning as businesses are keen to secure the best people for the long term.
We need to make construction a first choice for young people and inspire those who have left the sector to return. There are more training schemes and opportunities for people to enter the industry and develop worthwhile careers. As specialist recruiters we are playing our part by making sure people know about the opportunities available, including permanent positions. Confidence alone will reduce nervousness about the industry and keep the 'pipeline' of talent coming through.