Nonunion Shops Suffer in Labor Shortage: Study

May 16, 2022

An analysis of four years of labor data reveals that nonunion contractors have a more difficult time finding the workers needed to complete the work they’ve taken on, according to report from the Illinois Economic Policy Institute and the Project for Middle Class Renewal.

The groups analyzes survey data from the Associated General Contractors of America, which included 1,768 union contractors and 3,893 nonunion contractors.

According to the data, the skilled labor shortage is much less severe in the union segment of the industry. The report cites:

  • Union contractors are 21 percent less likely to experience delays in project completion times due to shortages of workers compared to nonunion contractors.
  • Union contractors are 14 percent less likely to experience difficulty in filling craft worker positions.
  • Union contractors have been 8 percent more likely to add workers over the past year, indicating a stronger ability to staff up and recruit new workers even in a tight labor market.
  • Meanwhile, supply-chain issues have affected the entire industry, with materials shortages and delivery delays affecting both union and nonunion contractors at statistically equal rates.

The report’s authors suggest:

“To better compete in the labor market, construction firms in need of craft workers could become union contractors to access readily-available pools of skilled workers in search of high-quality jobs. This would ensure robust expansion of registered apprenticeship programs, apprenticeship readiness programs, and pre-apprenticeship programs. Lawmakers and policymakers could consider enacting and strengthening prevailing wage laws, project labor agreements, responsible bidder ordinances, and affordable childcare and paid sick leave policies that institutionalize competitive labor market practices in the construction industry.”

Source: Illinois Economic Policy Institute

Frank Raczon, Construction Equipment
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
Mark Pentz, Calvin Group/IEDA
ID 9194607 © Arak7 | Dreamstime.com
ID 9194607 © Arak7 | Dreamstime.com