SEATTLE, Wash. — Washington’s construction industry is facing a worsening labor shortage, as companies struggle to fill open positions despite slowing demand and mounting economic pressures. A new workforce survey released Thursday by the Associated General Contractors of America (AGC) highlights the challenge, pointing to a mix of retirements, skill shortages, and fears of immigration enforcement as major contributors.

The shortage comes at an unexpected moment: the industry has actually seen job losses in recent months. Washington shed 8,200 construction jobs between July 2024 and July 2025 — a 3.6% decline, one of the steepest losses in the country. Nearly half of those losses were concentrated in the Seattle-Tacoma-Bellevue area.

Yet companies say they can’t find enough qualified workers to fill roles. Out of 37 firms surveyed across Washington, 76% reported unfilled salaried positions and 89% had openings for hourly craft workers such as crane operators, surveyors, welders, and pipefitters.

“Construction employment has stalled or retreated in many areas for a variety of reasons,” said Ken Simonson, AGC’s chief economist. “But contractors report they would hire more people if only they could find more qualified and willing workers and (if) tougher immigration enforcement wasn’t disrupting labor supplies.”

Legacy of the Great Recession & Retirements

Industry experts say the shortage is rooted in long-term structural issues. The Great Recession decimated the construction workforce, driving thousands into other careers. Many never returned.

“The talent pipeline was severely compromised,” said Anneliese Vance-Sherman, chief labor economist for the Washington State Employment Security Department. “If you have a lot of retirements taking place and you’re looking for someone with the same skill set as the person who is retiring, that can be a really hard position to fill.”

Wage Debate and Worker Retention

While many firms report investing in training and outreach — including online recruitment and partnerships with schools — labor leaders argue that wages are part of the problem.

“Sometimes, we get this idea that there’s no workforce,” said Monty Anderson, executive secretary of the Seattle Building and Construction Trades Council. “Well, there’s no workforce if you’re going to pay the bare minimum and not provide any training or any benefits.”

Immigration Enforcement Raises Fears

The survey also reveals immigration concerns weighing heavily on the workforce. A quarter of Washington contractors reported losing subcontractor labor in the last six months due to immigration enforcement, even though no companies reported direct raids at their job sites.

Nationally, immigrants make up one in four construction workers, with even higher representation in jobs hardest to fill. In Washington, the Migration Policy Institute estimates 21,000 undocumented immigrants work in construction.

The chilling effect of enforcement is real, industry leaders say. Even without raids, some workers are avoiding job sites altogether.

“Some of these companies give more regard to the cost of concrete and Sheetrock than they do to human beings,” said Anderson. He noted that some employers pay undocumented workers in cash, using their vulnerable status to cut labor costs.

What Comes Next

Contractors say the stakes are high: if the shortage continues, project delays, higher costs, and stalled growth in housing and infrastructure could follow. Already, firms in Washington report higher-than-average rates of project delays and cancellations due to rising costs, financing challenges, and workforce gaps.

Janelle Guthrie, vice president of communications for the Building Industry Association of Washington, said the problem spans the entire industry. “There (are) people who are interested in the trades, and then there are people who have taken the classes,” she said, but too few are making it onto job sites.

Meanwhile, construction leaders are bracing for the possibility of stepped-up immigration enforcement. Guidelines have been issued to help companies respond if immigration agents visit a worksite.

For now, the shortage shows no signs of easing, leaving contractors — and Washington’s construction industry at large — caught between shrinking job numbers, rising project costs, and a shrinking pool of available workers.

Originally reported by Alexis Weisend in Seattle Times,