A recent report from Lightcast found that skilled trades occupations face an annual nationwide shortage of 1.3 million workers, with three job openings for every individual who completes a postsecondary or training program in the skilled trades.
To perform these calculations, the researchers defined the skilled trades as 135 hands-on, in-person occupations that do not require a four-year degree but do require one or more of the following:
- Apprenticeship training
- Certificate completion
- Education up to and including an associate degree
- Other on-the-job training and experience
Examples of skilled trades occupations identified by the researchers include farm equipment technicians, sheet metal workers, gas plant operators and wind turbine service technicians.
In total, the 135 skilled trades occupations make up 9% of all U.S. jobs, about 20 million workers, and the unemployment rate for skilled trades industries is near an all-time 20-year low.
Seven of the top 10 most in-demand occupations are facing labor shortages, including carpenters, painters and supervisors of construction and extraction workers. Nationwide, the occupations with the most annual job openings, on average, are the following:
- General maintenance and repair workers (197,600)
- Assemblers and fabricators (177,300)
- Carpenters (126,900)
- Automotive service technicians and mechanics (121,200)
In addition to a shortage of program completers, retirements and job exits are another factor contributing to the shortage of skilled trades workers. More than one in four skilled trades workers are 55 or older, and retirements and job exits account for 837,000 annual job openings.
Shortages vary by state. The states that have experienced the most growth in skilled trades jobs over the past decade are Idaho (+39.3%), Utah (+36.3%), Arizona (+35.7%) and Nevada (+34.6%). Vermont experienced the steepest decline in skilled trades jobs (-10%).
Solutions to these shortages include CTE programs as well as apprenticeships, which provide training for 45% of skilled trades jobs. Apprenticeship completions in skilled trades fields have increased by over 70% since 2015.
Examining earnings data, the researchers also found that skilled trades workers earn, on average, $13,000 more annually compared to other non-BA occupations, a 31% salary premium. Skilled trades workers who transition to leadership roles/become business owners can expect to make a median annual salary of $210,000.
Readers with any questions on the report and skilled trades data and research can reach out to ACTE’s Research and Policy Coordinator Jesus Galvan (jgalvan@acteonline.org).
