Unskilled Labor Shortage in Housing Development Industry

Shortage of unskilled labor in the housing construction industry is going to have an adverse effect on the housing market. The purpose of this study is to identify what is causing this shortage of unskilled labor as well as what problems are anticipated to arise in the near future. The first problem outlined in the research is the extremely low unemployment rates that the United States currently has. Low unemployment rates throughout the entire economy cause high unemployment rates in less desirable jobs such as the housing construction industry, since this an inferior industry to workers. The next problem discussed is the lack of job security in the housing construction industry. Reasons for this problem include a history of massive layoffs after the housing crisis in 2008. Another problem outlined in this research is the new and ever-increasing immigration laws. Forty percent of the immigrants working in this field, after becoming unemployed, went back home to their native countries. With increasing immigration reform in the United States, these workers are finding it difficult to get back into the country now that there are jobs available to them. Lastly, this research explores the problem of high school students not being exposed to these types of careers, combined with the extreme pressure of going to college. High schools in the United States are no longer offering vocational classes in their schools, suffocating students exposure to these careers. With teachers and guidance counselors also pressuring these students to go to college instead of entering the work force, unskilled labor is being destroyed from its source. This research shows how these problems are affecting the shape of the housing industry in the United States today. Unnatural inflation rates, combined with small home development companies going out of business in the wake of nationwide home development companies, are perfect companions in the housing development industry being far from what we are experiencing today