The Labor Shortage Is Acute in Many Industries

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By Peter C. Earle
From the American Institute for Economic Research

You’re a construction company, an agricultural concern, or a manufacturing firm — all similarly unable to undertake infrastructure projects, fill freight trains with crops, or produce the countless scores of products the market seeks.

This is exactly the situation the United States finds itself in now. And it is worsening. Last year, the Associated General Contractors of America reported that 80 percent of its 27,000 member firms are having a difficult time filling openings for hourly craft workers.

And the crisis extends far beyond construction: in many subsectors of agriculture, home care, transportation, and manufacturing, the same phenomena are being reported. An estimated 8 million people, representing 5 percent of the entire U.S. workforce, are either fleeing or laying low.

Each is reporting lower productivity, longer production times, higher explicit costs, and perhaps worst of all a massive explosion of forgone projects and skyrocketing opportunity costs. Consumers are receiving fewer goods and services at higher prices and at times at subpar standards.

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