Underemployment

Underemployment Silver Linings

There is no shortage of ink spilled over staffing concerns in construction. We need field staff, we need administrative staff, we need management staff, and we struggle to build a reliable and sustainable pipeline. Our public works projects will stretch on for decades. Cities will build, tear down, and rebuild. Residential units will be in demand as our population grows. We spent nearly $2T in 2023, up about 35% since 2017. Left unchecked, this imbalance will only get more pronounced.

A recent article in the Wall Street Journal highlighted the underemployment trend for college graduates both five and ten years after graduation. As you might imagine, construction is not included as the article solely focuses on the college graduate demographic. Essentially, about 50% of college graduates have jobs that do not even require a degree. Further, over 50% state that their jobs do not leverage their skills or credentials. That all feels bleak and depressing.

I am an optimist. Well, maybe a practical realist with a sunny outlook. I think there is a huge opportunity if we can play it right and change some attitudes. I have long advocated that we do a poor job really marketing our industry and the vast impacts we deliver. Also, that college is not for everyone. Certainly not for all high school graduates that might not have the maturity, guidance, or knowledge to make some long-term decisions. All is not lost! Here is my theory of the case:

Stop the Insanity!

Let’s recognize that the same old approaches won’t move the needle. Nearly 55% of communications and psychology majors are underemployed. Why not make the case that they could easily fit into our organizations. Communication is fundamental to teamwork. If we can help teams communicate more effectively and consider how individuals think in assembling teams, the bottom-line results would be incalculable.

Construction Companies Are Businesses

As a business coach, I regularly reinforce that, no matter how small, they are businesses. I dispel the self-description of “I’m just a contractor” in lieu of “I’m a business owner.” We need to step into that perspective proudly. Once we make that shift in mindset, the stretch to recruiting business majors (nearly 60% underemployed) won’t strain a muscle. The need for a business mindset is universal, regardless of size.

As we celebrate WIC Week, I remain hopeful that there is an opportunity to make progress on participation in the construction workforce. Labor force participation for women lags men by 10 points (57% to 67%). There are surely many reasons including that over 80% of stay-at-home parents are women. Construction can and should be an option for parents returning to the workforce. We all need to do the hard work of changing our image, taking different approaches, thinking creatively, and creating welcoming environments.

Give me a parent who successfully managed a household onto my team any day of the week. They are natural project managers and problem solvers.

Michael Riegel

MRiegel@AECBusinessStrategies.com https://michaelriegel.substack.com/

516-238-0859