Here’s Where All the Construction Workers Went
9:40 am ET
Oct 19, 2015
Construction
Heres Where All the Construction Workers Went
By Jeffrey Sparshott
@jeffsparshott
Jeffrey.Sparshott@wsj.com
The Wall Street Journal has chronicled builders complaints about a
shortage of construction workers and wondered why the
labor pool appears so shallow when employment levels are still well below those of the boom years.
Indeed, industry-wide employment cratered from 2006 to 2011, losing nearly 2.3 million jobs. Its gotten well less than half of those back.
Where did they all go?
Well, the
Census Bureaus job-to-job flows program tracks workers as they move in and out of industries. The data isnt that easy to use and underlying microdata isnt public, but agency economists
Hubert Janicki and
Erika McEntarfer dove in recently and came up with some interesting findings.
Among construction workers who became unemployed for more than three months between 2006 and 2009:
About 40% stayed in construction, either returning to their former employer or landing with a new one.
About one-third switched to another industry, but only after sitting on the sidelines for more than a year. Typical destinations included work as general laborers, landscapers and truck drivers.
Contrary to conventional wisdom, few headed off to the booming oil and gas industry. The mining sectorwhich includes oil and gas extractionaccounted for less than 5% of new jobs for former construction workers heading back into the labor market.
And about one-quarter of displaced construction workers were still out of work five to seven years after they lost their jobs. These individuals presumably have left the labor market, although they could be working informally or be self-employed, Janicki and McEntarfer said.