Employer claims of unavailable labor are rooted in an unwillingness to raise wages and the long-term decline of the nation’s system of training and allocating labor.
As the American economy reopened in the first half of 2021, reports of a “labor shortage” have spread throughout US industries. But there was one sector where employer panic about hiring was old news: the massive and decentralized US construction industry. According to industry surveys, the share of homebuilders who rank the “cost and availability of labor” as their most significant problem has increased every year since 2011. This summer, the complaints continue.
What can the construction example tell us about the increasingly widespread idea of a “labor shortage”? Mark Erlich, the former Executive Secretary-Treasurer (EST) of the New England Regional Council of Carpenters, now a fellow at the Harvard Labor and Worklife Program, laughs at employer claims: “Labor shortage” has been a “chronic cry for decades.