The U.S. Census Bureau did some interesting job-to-job flow research into the question: "Where Did All the Construction Workers Go?" The purpose was to identify what happened to workers after the 2007 housing bust and recession, looking at national numbers.
Here in California, construction employment went from 939,000 in July 2006 (the Boom) to 606,000 by July 2009 (the Bust).
- The researchers found that workers coming into construction during the boom came from other industries. About 50% came from the Leisure/hospitality industry sector (such as food service). This reminds us that some of those workers during the boom were not always the best construction workers.
Are they coming back? It looks like about 60% will not be back.
- It appears about 40% of the construction workers came back to construction, either working for their former employer, another contractor or on their own.
- About 33% went into another industry. The most common: trade/transportation and business services.
- About 25% of displaced construction workers have left the labor market. They retired, are working "informally" or are self-employed.
The finding the researchers were most surprised about was the average age of the construction worker being hired.
- The 19-24 year-old age group was about 18% of new hires prior to 2006. Today, that age group has declined to 13% of the new hires.
- The researchers were surprised and thought it meant employers weren't able or willing to train workers. Employers will tell the researchers that that age group isn't applying for construction work; many don't know it's even a career opportunity.
- Again, these are national numbers. California's average may be higher or lower.
These results are not a surprise to construction employers.
- It's not that you can't find those workers from 2006. They're just not there to be found.
- We have got to do a better job in middle and high schools showing students the rewards and job satisfaction to be found in construction careers.
You can read the full report at http://researchmatters.blogs.census.gov
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