Field Notes

Insights and advice from the construction field.

Why California Construction Is Increasing the Labor Demand in 2024

Building Project with Senior Civil Engineer, Architect, General Worker

California construction is increasing the labor demand in 2024. As a result, there are increasing opportunities for construction employment within the state.

The growing job creation and economic development in California construction mainly are due to infrastructure development, housing demand, green initiatives, and tech advancements. These factors support construction career advancement.

Infrastructure Investment

The federal government is investing in transportation improvements, public facility upgrades, and water and energy infrastructure updates in California:

  • As of April 2024, the Infrastructure Investment and Jobs Act (IIJA) is providing the state with federal infrastructure funding estimated to provide at least $49.1 billion over 5 years from the federal fiscal year 2022 to the federal fiscal year 2026.
  • $23.93 billion is dedicated to transportation-related projects.
  • $6.05 billion is dedicated to climate, energy, power, building, manufacturing, and water.

Other government incentives support growth in California construction:

  • Projects involving affordable housing, renewable energy goals, and earthquake-resistant structures are in the works.
  • Tax credits, grants, and subsidies encourage companies to build, further increasing the construction labor demand.

Housing Demand

California is dealing with the housing shortage by letting developers build apartment buildings, condominiums, and single-family homes. Also, the Excess Land for Affordable Housing program provides funding for 5,550 sustainable, cost-effective housing projects. These projects increase the state’s construction labor demand.

Green Building Initiative

California builders receive incentives to reduce the state’s environmental footprint. Because the record-breaking heat in 2023 increased the need for green construction, environmentally conscious construction is increasingly in demand.

California’s Green Buildings, Green Fleet, Green Buyer, and other mandates place a growing emphasis on sustainable, energy-efficient design and construction. These mandates lead to upgrades, renovations, and other projects that increase the construction labor demand.

Technological Advancements

Building information modeling (BIM), drones, and automation are among the technological advancements increasing construction project efficiency and productivity. Construction firms that implement the latest technologies have a high demand for their services. As a result, construction workers with experience using the technologies are in high demand in California.

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