Tampa Bay area construction companies will need to recruit 5,580 more workers in 2023 in addition to the normal pace of hiring. This forecast is a per capita estimate based on research from Associated Builders and Contractors (ABC).  

The frenetic pace of recruiting construction workers in Tampa Bay is expected to extend into 2024, with an incremental 3,311 workers needed next year, as well, in addition to the normal pace of hiring.

Overall, the demand for construction workers in America has been increasing at an epic rate.

According to ABC, the construction industry averaged more than 390,000 job openings per month in 2022, the highest level on record, and the industry unemployment rate of 4.6% in 2022 was the second lowest on record, higher than only the 4.5% unemployment rate observed in 2019. In addition, national payroll construction employment was 231,000 higher in December 2022 than in December 2021.

Right now, filling open jobs at any Tampa Bay company is a struggle.

A recent survey by the National Federation of Independent Business Owners found that after inflation, the most critical problem facing these businesses is the inability to recruit and retain quality employees.

Right now, says the Federal Reserve,  unfilled jobs remain near an all-time with 1.7 openings per unemployed person.  As a result, only one person is being hired per every four job openings.  To put this dismal hire-to-opening ratio in perspective, ten years ago, there was one hire per every job opening.

Compounding the recruitment woes of Tampa Bay's small business owners is the very stubborn quit rate.  According to the Federal Reserve, for every ten hires made, seven current employees quit. 

So, how can local builders and contractors fill the open jobs at their companies? Most metrics indicate that advertising on Tampa Bay Radio may be the best way.

Construction companies in the Tampa Bay area will need to recruit 6,600 blue-collar workers on top of the normal pace of hiring in 2022 to meet the demands of the current building market. These statistics are based on forecasts from Associated Builders and Contractors, Inc. (ABC), an association comprised primarily of U.S. firms that work in industrial and commercial construction sectors.

"The construction industry desperately needs qualified, skilled craft professionals to build America," said Michael Bellaman, ABC president and CEO. "The Infrastructure Investment and Jobs Act passed in November and stimulus from COVID-19 relief will pump billions in new spending into our nation's most critical infrastructure, and qualified craft professionals are essential to efficiently modernize roads, bridges, energy production, and other projects across the country. More regulations and less worker freedom make it harder to fill these jobs."

The construction industry's appetite for new hires in the Tampa area will continue into 2023, according to ABC. It is expected that during that year,  an additional 5,991 blue-collar workers in addition to the normal pace of hiring.

There are 123,853 small businesses in the Tampa-St. Petersburg-Clearwater, FL Metro Area, according to the US Census Bureau. Based on projections from the National Federation of Independent Business Owners (NFIB), nearly half of these companies have job openings they cannot fill.

As a result of the acute labor shortage, says the NFIB, 29% of small business owners rank the quality of labor as the most important problem they face. A year ago, only 21% said finding workers was their biggest issue.

The labor crunch in the Tampa Bay area is being driven, in big part, by a record-high number of employees voluntarily quitting their jobs. Just last month, according to the US Bureau of Labor Statistics, 4.5 million employees across the country left their current place of employment.

According to the Wall Street Journal, those who are not currently working say they are in no hurry to return to the workforce. The lack of urgency stems from five primary reasons:

• 29% say they don't need to work right now because their spouse is employed
• 28% say they cannot return to work because of care responsibilities at home
• 25% say they don't need to return to work because they have a financial cushion
• 20% say they are fearful of returning to work because of COVID-19
• 5% say they do not need to return because of current unemployment benefits

There seems to be little chance that these resigned workers can be lured back into the labor force. Therefore, to fill open jobs, local business owners will need to focus their efforts towards recruiting among Tampa Bay's "passive" job candidates.

According to the US Census Bureau, there are 138,637 businesses in the Tampa Bay area. Some of these companies are small. Some are large. Some sell machine parts. Some sell software. Some provide legal services. Some provide eyecare.

Regardless of the size of the business or what it sells, all of these local companies have one thing in common: they are struggling to fill open jobs with qualified candidates. This is true in Tampa Bay as well as Clearwater, St. Petersburg, Lakeland, Brandon, and every point in between.

Right now, across the country, according to the Bureau of Labor Statistics, there are 10.9 million open jobs. This is an all-time record.

To put this mammoth number of open jobs in perspective, the Federal Reserve says there are now five job openings per every four unemployed people.

Attempting to recruit Tampa Bay workers from the ranks of the unemployed has proven fruitless for local companies. This is because many people who lost their jobs during the pandemic have no intention of returning to the workforce anytime soon.

There are several reasons so many Tampa Bay workers are not coming back.

First, older workers have opted to retire earlier than expected. Second, childcare issues are making it necessary for some parents to stay home. Third, other workers cite health safety issues for the reason why they chose not to work. Finally, some of the unemployed are choosing to live off the savings they amassed during the pandemic.

So rather than focusing recruitment efforts among former employees and the ranks of the unemployed, local business owners need to target the 1.2 million passive job seekers in Tampa Bay.

If you were one of the 2.2 million adults who tuned in to Tampa radio last week, then chances are excellent that you heard advertising for ZipRecruiter.  That's because the company purchased 1,436 advertisements to air on local stations during the month of August, according to Media Monitors.

ZipRecruiter is an online recruitment site that helps companies of every size advertise open jobs. Overall, more than 2.8 million companies have posted an opening on ZipRecruiter.com

It is no wonder that ZipRecruiter and its competitors like Indeed have been making significant advertising investments on Tampa radio. Finding qualified workers is one of the toughest challenges facing local business owners. According to the Bureau of Labor Statistics, the number of job openings in the U.S. has reached a record high 10.1-million jobs with just not enough candidates to fill them.

If you've heard these commercials on Tampa radio, then you know that ZipRecruiter is not advertising to attract job seekers to its website.  Rather, the company's goal is to convince local business owners to buy help wanted ads from them.

So, why has ZipRecruiter chosen Tampa radio as a business-to-business (B2B) advertising resource?  The first reason is revealed in the first line of their commercial.

"According to research," says the announcer, "82% of people remember radio ads."

The number of job openings in the Tampa Bay area has exceeded pre-pandemic levels, according to the Bureau of Labor Statistics.  Businesses of all sizes are adding employees in a big way, according to the ADP Research Institute, but still, large numbers of positions remain unfilled.

With the Florida unemployment rate still around 5%, Tampa Bay business owners wonder why they are having difficulty attracting applicants for open positions.

According to a recent article posted in The Economist, there are two major reasons why many sidelined workers aren't anxious to come to work. The first is fear.

In January, Tampa Bay small business owners were in a panic. The unemployment rate was at a record low 3.4%, and there were not enough workers to fill their open jobs. 

As of today, though, Florida is reporting that at least one-in-six of the state's workforce have lost their jobs for COVID-19 related reasons. Yet, many small business owners are still struggling to find employees.

According to The Wall Street Journal, "For some workers, unemployment benefits are now paying more than their old jobs did. For others, safety concerns or a lack of child care, as most schools and day-care centers remain closed, are making them hesitant to go back."

“That’s going to get in the way of any real recovery,” Douglas Holtz-Eakin, president of American Action Forum and former director of the Congressional Budget Office, told WSJ.

The struggle to hire employees creates an additional threat for those Tampa Bay small business owners who received loans under the SBA's Paycheck Protection Program.  

To qualify for the loan forgiveness provision of the PPP, business owners must restore its workforce to pre-Coronavirus levels. This must be accomplished within eight weeks of receiving the monies.

So, just like in January, local small business owners are under pressure to fill open jobs. Advertising on Tampa radio is a potent way to attract and hire the needed employees.

Tampa Bay small business owners need employees...desperately.

According to a report from the National Federation of Independent Business, 26% of small business owners say finding qualified workers is their number one problem. 

The report goes on to say that 88% of small business owners looking to hire new employees are finding there are no qualified candidates.

The historically low unemployment figures in Tampa Bay appears to be the root cause of local hiring woes. The metro area's jobless rate stands at 3.4%. There are just not enough qualified workers to go around.

Most small business owners have exhausted the traditional methods of recruitment. These include online job board posts, newspaper ads, referral bonuses, and help wanted signs. All to no avail.

To successfully attract the qualified applicants they yearn for, local small business owners need to command the attention of 'passive' job seekers. The number one source for these candidates is Tampa radio.

If you were one of the 2,193,604 adults who tuned-in to a Tampa radio station last week, it is likely you heard a commercial for Indeed.  That's because, last week, Indeed, the world's largest online job site was also radio's biggest advertiser.

The reason Indeed invested so heavily in radio advertising is that they have far more job openings posted on their site than there are job-hunters to fill them. 

This is not unlike the predicament of Tampa Bay small business owners who are also having difficulty finding and hiring qualified candidates.

What Indeed has figured out is that there are not enough unemployed people or disgruntled workers looking for jobs, especially among those in white-collar professions. So, the company is looking to attract what human resource experts call the 'passive job seekers'.

It turns out that advertising on Tampa radio is also the best way for any business owner to recruit, hire, and retain those passive, white-collar job seekers.

Forty-percent of contractors nationwide report that they have turned down jobs this year because they don't have enough skilled blue-collar workers. In Florida, over one-third of contractors say they would add 25 more employees this year if they could recruit qualified candidates.

The labor crunch isn't confined to construction. Overall, half of all Tampa Bay employers say they are having difficulty hiring enough blue-collar employees to fulfill the increasing demand from customers. This includes truck drivers, plumbers, HVAC technicians, electrical workers, machinists, metal workers, landscapers, janitors, and mechanics.

Tampa Bay business owners can benefit from a study by The North Carolina Works Commission. The NCWC found that the recruitment efforts of many employers in that state are failing because they depend on hiring strategies from a time when qualified candidates were plentiful.

These failing strategies include posting on job boards like Monster and Indeed; publishing employment ads in local newspapers; and pleading on social media pages. Some small business owners still depend on hanging help-wanted signs.