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How can US manufacturing and construction address skilled-worker shortages?

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In the news

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Rediscovering the trades. As baby boomers retire, the demand for skilled workers in the trades, such as electricians and welders, has increased. This has caused pay for these jobs to rise fast, prompting more young people in the US to pursue careers in the trades. Many young people are enrolling in vocational training programs. Some are even starting their own businesses in the trades. [WSJ]

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AI-proof trades? Many Gen Z workers in America are attracted to the trades because they see these jobs as less likely to be supplanted by AI than white-collar roles. And many consider the trades a steady career option: a recent poll that included about 1,500 US adults aged 18 and older showed that 54% of Gen Z respondents view a high school diploma as sufficient for securing work that comes with good pay and stability. [Axios]

From 2022 to 2032, annual hiring for critical skilled roles is expected to be more than 20 times the projected annual increase in net new jobs.

On McKinsey.com

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Skilled-labor shortage. The US economy is struggling with a shortage of skilled trades workers such as carpenters and plumbers. This shortage affects the nation’s manufacturing and construction industries and has increased labor costs, which threatens economic growth. For some roles, the rate of churn is so high that it could cost companies more than $5.3 billion every year in talent acquisition and training costs alone, McKinsey partner Brooke Weddle and coauthors share.

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Hardest-hit roles. Some of the most challenging jobs to fill are construction laborers and helpers, electricians, welders, cutters, solderers, and braziers. To address the talent gap, one heavy-equipment manufacturer uses cobots alongside human workers to automate repetitive tasks and free up employees for more complex work. Using cobots has enhanced productivity by 40% and improved resource utilization by 50%. Consider more steps to stop leaks in the talent pipeline for skilled trades.

Cut churn in skilled trades

—Edited by Jana Zabkova, senior editor, New York

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How can US manufacturing and construction address skilled-worker shortages?

Back to blue-collar work

In the news

From 2022 to 2032, annual hiring for critical skilled roles is expected to be more than 20 times the projected annual increase in net new jobs.

On McKinsey.com