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Deep Labor Shortage to Drive Construction's Future

The historically low US unemployment rate will shape the industry in 2018 and beyond, according to JLL.

By Brian J. Rogal | Updated on December 19, 2017

chi-construction crane (3) The 62nd construction crane in Chicago this year just went up on the future site of Belmont Village, a senior living facility on the Northwest Side.

CHICAGO—The US unemployment rate now hovers at around 4.5%, the lowest in many years, and the recent construction labor shortage continues to deepen across the nation, according to the latest government report. This workforce has not grown significantly during the last nine months, and researchers see no sign of an increase. Therefore, industry professionals expect wages to increase at a faster rate. Furthermore, they believe many builders will begin using new construction technologies to offset that challenge.

Despite the headwinds, commercial real estate kept expanding in the third quarter, according to a new report from JLL that tracks national construction trends. Construction spending was up 1.9% over 2016 levels and contractor and subcontractor work was also up 1.4%.

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