Core-age and older workers’ labor force participation is at historic highs, but younger workers (20 to 24) are participating at record lows.
Adapting to demographic shifts and evolving recruitment strategies is essential for future workforce stability in construction.
Earlier this month, at the AIA Conference on Architecture & Design in Boston, I spoke about the unique configuration of today’s labor force—a topic that has never been more relevant to the construction industry.
Understanding where the labor is and who is actually working is essential for anyone looking to staff a job site, plan a construction project, or forecast future workforce needs.
Currently, the percentage of core-age workers (25 to 54 years old) in the labor force is at or near historic highs, hovering around 83% to 84%. This is excellent news for employers, as this age group benefits from both years of experience and still has many years of labor to give to the economy.
Even more striking is the record-breaking workforce participation of older workers. For example, the labor force participation rate of 55- to 59-year-olds at 75% today is a record high since at least the mid-1970s.
Similar record-high labor force participation rates exist for even older worker groups, including those aged 60-to-64 and 65-to-70.
Only beginning with septuagenarian workers, labor force participation falls short of historic records, mainly due to long-run COVID factors. Today, people are staying in the workforce longer than ever before.
There’s a different story at the other end of the age spectrum. Young adults aged 20 to 24 are not engaging, or not being engaged, in the workforce at the rates seen in previous generations.
Back in the late 1980s, nearly 80% of 20- to 24-year-olds were working. Since about 1989, that rate has been on a slow, steady decline. Today, only about 71% of people in this age group are in the labor force, a figure that is only slightly better than the all-time low of 69% recorded between 2015 and 2016.
Chart of labor force participation by age groups in the United States. The percentage of core-age workers (25 to 54 years old) in the labor force is at or near historic highs. Image: ConstructConnect
Some might argue this is because more young people are in college, and college students are counted as non-participants. However, Department of Education data shows college attendance peaked around 2010 and has since stabilized at 18.5–19 million students.
Moreover, the gender balance has shifted, with more women than men attending college. This doesn’t fully explain why only 73% of 20- to 24-year-old men are working, a four-generation low.
For construction leaders, these trends highlight the importance of who and how you target today’s labor force. With no meaningful additional capacity in the core-age and older labor supply, recruitment and retention strategies will have no alternative but to focus on younger people who have never had a strong bond to the workforce.
Core-Age and Older Workers: Develop flexible work arrangements and training programs that appeal to experienced workers who may be looking for new opportunities or phased retirement.
Engage Younger Workers: Engaging with these younger workers will require unique training solutions, whether in-house or via trade school programs. Partner with schools, trade programs, and community organizations to create pathways into construction for 20- to 24-year-olds.
Highlight the benefits of a career in construction, including good pay, advancement opportunities, and the satisfaction of building something tangible.
Adapt to Demographic Shifts: Monitor labor force trends closely and be ready to adjust recruitment strategies as participation rates change.
The construction labor market is evolving. By understanding where the workforce is strongest and where it is thinning, companies can position themselves to succeed now and in the future.
Go where the labor is available and invest in strategies to bring the next generation of labor into the fold.