As industries continue trying to fill the labor shortage, infrastructure jobs are in high demand.
Yet the projected growth in the infrastructure workforce, which ranges from construction workers to bus drivers, still may not be enough to rebuild America, especially amid a possible recession.
The U.S. is expected to add as many as 1.5 million new infrastructure jobs each year until at least 2031, according to a Brookings analysis of BLS data, but an estimated 1.7 million workers will need to be replaced over that time period due to workers leaving the industry.
"Maximizing the reach of our infrastructure investments — especially amid a potential recession — depends on creating new jobs and filling existing positions that are sitting vacant," Joseph Kane, a fellow at the Brookings Institute and author of the report, told Yahoo Finance.
The infrastructure jobs at issue include operation, maintenance, and STEM workers such as engineers.
Attracting the right talent
Over 95 different infrastructure occupations employ nearly 16 million workers (11% of national employment).
But as experienced workers are leaving jobs or transitioning out of them, there are not enough workers coming into the industry. Currently, only 11% of infrastructure jobs are held by workers under the age of 25.
The Biden administration's plan to reinvent America's infrastructure through its workforce led to an increase in federal funding through the Infrastructure Investment and Jobs Act (IIJA) of 2021, which earmarked $863 billion to create more jobs on an annual basis.
President Biden greets a worker as he arrives to speak about investments in infrastructure jobs during a visit to Los Angeles, October 13, 2022. REUTERS/Kevin Lamarque ·Kevin Lamarque / reuters
Part of the issue is that many operational and engineering roles require more experience and skills so consistently addressing the "skills or opportunities gap" is key. Much of this gap stems from inequitable hiring practices that lead to a majority of infrastructure jobs being retained by men, a lack of workplace flexibility, and fewer highly experienced workers left to train the incoming workforce.
For example, according to the report, "many younger students, women, and people of color lack exposure to these pathways and may not view infrastructure as a career of choice." Consequently, both women and people of color find themselves greatly underrepresented in many infrastructure positions.
Additionally, even though infrastructure jobs pay 30% more in the lower, starting wage percentile, "it does not fully capture the quality of these jobs," Kane said, though "it does signal important steps toward 'good-paying' jobs and livable wages."
Effects of recession
High inflation combined with a possibility of a recession has also had an impact on the infrastructure workforce.
During the Great Recession from 2007 to 2009, construction and manufacturing shrunk significantly as fewer people bought homes, cars, or other investments. A recession can also bring cutbacks in projects, material purchases, and trade that can halt hiring across the infrastructure sector, Kane said.
According to Kane, "hits to city and state budgets may limit the ability to hire, train, and retain infrastructure workers."
However, the type of recession also matters. During the coronavirus pandemic, there was a high demand for delivering goods and logistics, but with a low labor force participation rate, it was difficult to fill jobs.
Construction workers Tekovin Miller and Darien Bailey install actuators for tilting panels at the Duette solar site in Bowling Green, Florida, March 24, 2021. REUTERS/Dane Rhys ·Dane Rhys / reuters
For example, Kane said, "a local water utility or transportation department may be less able or inclined to fill needed hires across a range of projects and operations. However, the necessity of many of these positions will require continued hiring in many cases, and increased federal spending (already passed as part of IIJA and other legislation) will likely offset these budget hits."
And although the IIJA expanded hiring opportunities for infrastructure employees through federal funding, the Brookings analysis warned that "just because eligible state and local entities can invest in the workforce development does not mean they will."
"It is therefore critical that employers, infrastructure agencies, and workforce leaders break out of the 'business-as-usual' practices currently governing project management and how workers are recruited, trained, hired, and promoted," the analysis stated. "If they do not, the consequences will become very clear— and very negative — in coming years."
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Tanya is a data reporter for Yahoo Finance. Follow her on Twitter. @tanyakaushal00.
