How Millennials Have Shaped the Construction Industry—for Better and for Worse
Date Posted: July 10, 2017
Posted In: Ideas, Workforce,
From Construction Executive: Last year marked a milestone for the country’s youngest generation of workers, commonly known as millennials: They overtook baby boomers as the largest workforce segment in America. Employers should be ecstatic that elevated rates of retirement are positioned to be offset by an influx of younger, energetic, tech-savvy workers ready to stimulate productivity.
But in the construction industry, firms continue to wrestle with skills shortages as older workers in occupational categories such as welding and carpentry retire in large numbers with their potential successors disproportionately pursuing jobs in industries such as finance, professional services and health care. In 2002, 11 percent of construction workers were aged 55 or older, according to data from the Bureau of Labor Statistics. By 2015, this share exceeded 20 percent, per the Current Population Survey.
What’s more, despite massive growth in the population of twenty-somethings in recent years, by 2015 the fraction of construction workers between the ages of 20 and 24 was around 7 percent—down from 11 percent a decade ago.
This is hardly where millennials’ impact on construction ends.
MILLENNIALS TEND TO CONGREGATE
Construction spending has tended to blossom in communities that attract millennials in large numbers. Whereas baby boomers and Gen Xers were looking to move into larger suburban homes, the past decade was dominated by movement in apartments situated in dense, urban environments.
The Great Recession shaped some of these preferences. Having observed the foreclosure crisis and the massive loss in housing wealth between 2006 and 2010, millennials have generally been less interested in homeownership. Many have student debt, but no children or spouse, which also renders apartment living more appealing. The shakiness of employment markets in recent times also has induced younger workers to prefer to rent rather than to tie themselves firmly to a specific region.
Denver represents an example of millennials’ migratory patterns. Attracted by progressive policymaking, a hip western vibe and proximate world-class recreational opportunities, Denver’s fortunes have soared as the city has emerged as one of the nation’s millennial meccas. According to a study prepared for the Metro Denver Development Corporation, millennials comprised almost 25 percent of the region’s population and 35.9 percent of its labor force in 2015.