The skilled trades shortage didn’t happen overnight. One of the most concerning skilled trades shortage stats is the ratio of Baby Boomers retiring to Millennials and Gen Z entering the trades. For every five Baby Boomers that retire, only two candidates from younger generations are stepping in. From that standpoint, it’s just a simple math game: you have five leaving and two coming in, creating more and more of a hiring challenge. According to the National Electrical Contractors Association, nearly 30% of union electricians are near retirement.
Additionally, Skilled Trades data shows that 40% of the 12 million people in the skilled trades workforce are over the age of 45, with nearly half of those workers over the age of 55, and less than 9% of workers aged 19-24 entering the trades. For 20 years, society has made earning a college degree the end all be all. The primary question high school seniors get asked at graduation parties is, “Where are you going to college?” instead of, “What are you going to do?” As a result, young people are less inclined to specialize in the trades, making it difficult for employers to find skilled labor to replace the older generation.
It’s not a problem that can be solved overnight. Becoming a plumber or electrician can take four to five years. Apprenticeship programs for HVAC technicians usually last three to five years. But, as we say, the reality is it’s a numbers game right now. The trades industry is facing a net loss in its workforce, with more people retiring or leaving the trades than those entering. This shrinkage in the skilled labor pool is a significant concern for the industry’s sustainability and growth.