Lack Of Supplies And Workers Is Slowly Killing This Major Industry

America is set for failure after industries struggle to bring back workers due to the continuation of government handouts. The United States housing market needs one million new construction workers to add to the workforce, according to one trade organization.

Associated Builders and Contractors — a trade association that represents the non-union construction sector — stated that shortages in home-supply are accompanied by a distorted labor market for construction employees:

Construction spending is likely to reach $1.45 trillion in 2021, up 1.3% from 2020. Under this scenario, employment demand increases by 430,000 this year from actual employment of 7,829,000 in 2020. A higher growth rate scenario could boost the number of additional construction workers needed in 2021 to nearly 1 million.

A recent analysis from Zillow found that the average house is sold within six days of being on the market. In some major cities around the nation – such as Columbus, Cincinnati, and Kansas City – that average is only three days.

The value of the typical American home has therefore grown by 13.2% since May 2020. Between 2020 and 2021, homeowners have observed a collective equity gain of $2 trillion.

On the supply side, the construction of new long-term housing has slowed over the past several decades. High costs for lumber and other raw materials are adding nearly $36,000 to the price of an average new single-family home. On the demand side, Americans are moving from cities to the suburbs — in large part because of COVID-19 lockdowns.

Meanwhile, the supply of workers is presently low due to enhanced federal unemployment handouts, which is discouraging workers — particularly in Democrat-run states that have not opted out of the payments — from finding jobs.

Small business owners in the construction industry are feeling the impact of unprecedented demand; however, their operations are bottlenecked by the worker shortage.