California study finds labor shortage in construction industry

MONTEREY COUNTY, Calif. (KION-TV) -- Uncertainty brought by ICE fears is causing concern within the construction industry. A recent study by the University of California, Los Angeles, projects a labor shortage affecting California’s goal for the construction of affordable housing. 

Local construction companies are experiencing greater uncertainty. 

“Me ha afectado mucho porque la gente está asustada,” Temo Alvarez, supervisor of F Luna Construction, says the concern is palpable among most of his employees. 

A recent UCLA report forecasts a labor shortage within the state’s construction workforce. 

“My workers, they do fear, every time, and there are questions on our daily team meetings as far as what's going on and what this administration is doing, and all I can tell them is to keep moving forward, to have their documents ready.” 

Oscar Blancas, owner of Blancas Construction Inc., adds he has not seen a labor shortage within his company. Yet many of his workers express fear when sent to local hardware stores after what happened at the Home Depot in Southern California. 

“Nos está atrasando,” Temo Alvarez adds that these fears have delayed their work. The study projects that unemployment in California will reach 4 percent in the country. A similar trend in California is projected, with a projection of 5.2 percent by 2026.  

Data from the National Home Builder Association shows that in 2023, 41 percent of California’s construction workforce is foreign-born. Many of them remain with fear and uncertainty. 

Blancas adds that tariffs and other policies have also posed challenges. He says he has seen prices fluctuate since February, making budgets for clients vary. 

“How do I tell my client, you know what, I can't give them a firm price or a lump sum, because there's always those fears where, well, we don't know what tomorrow's gonna be like, as far as prices and stuff. So it is a big concern,” he said.

The report adds projected home builds in California will reach 102 thousand units this year and 126 thousand by 2027, making little progress on the state’s 2.5 million-unit construction goal by 2030.