News
May 11, 2026

Skilled Trades Demand Surges as Construction Industry Faces Retirement Cliff, JLL Says

Construction Owners Editorial Team

Skilled Trades Demand Surges as Construction Industry Faces Retirement Cliff, JLL Says

Demand for skilled trades workers across the construction and facilities sectors is growing faster than nearly every other occupation category, according to a new report from JLL, as companies scramble to replace retiring workers and support increasingly complex building systems.

Courtesy: photo by Jose on Pexels

The commercial real estate services firm said annual job postings for skilled trades positions have doubled over the past decade, fueled by strong construction activity, expanding AI infrastructure and the growing need for energy-efficient buildings.

Facilities management teams and construction organizations are also working harder to attract younger workers into the trades, offering expanded training opportunities, apprenticeships and paid education programs.

“It’s been building over a number of years,” Paul Morgan, global chief operating officer of real estate management services at JLL, told Facilities Dive. Skilled labor demand is “more acute now than we’ve seen before. And the reason that it’s probably becoming more acute is the fact that we’ve got a retirement cliff that’s building.”

According to JLL’s skilled trades talent research report released in April, employment from 2024 to 2034 is projected to grow 9.5% for electricians, 8.1% for HVAC technicians, 6% for construction workers and 4.5% for plumbers, pipefitters and steamfitters. By comparison, all occupations are expected to grow just 3.1% during the same period.

Construction Technology and AI Driving Demand

The report said the rapid expansion of AI infrastructure and the increased focus on emissions reduction are creating additional opportunities for electricians, HVAC technicians and other skilled workers capable of managing advanced systems.

JLL warned that current workforce pipelines are not sufficient to meet future demand. The company estimates that 2.1 million skilled trade jobs could remain unfilled by 2030, potentially resulting in $1 trillion in annual economic losses.

Last year, roughly 150,000 workers entered the skilled trades labor pool through apprenticeship programs, compared with nearly 600,000 open positions posted across major skilled trade occupations in the U.S., according to the report.

At the same time, rising college costs and uncertainty surrounding traditional white-collar careers are shifting younger workers’ attitudes toward vocational careers.

“The pendulum, however, may be swinging back,” the JLL report states, citing the increasing financial burden of four-year degrees and changing career expectations among younger generations.

JLL noted that college tuition has risen 900% since 1983, nearly double the growth rate of medical costs and four times the increase in housing prices.

Worries about artificial intelligence replacing office-based jobs are also influencing career decisions, Morgan said.

“The continued dialogue around AI … doesn’t seem to be abating in any shape or form,” Morgan said. “Some roles are starting to get more disrupted. … Some people are now thinking, maybe long term, [that if] this AI disruption continues, ‘Where’s a safer place that I can get longevity in my career?’ I think skilled trades is exactly that.”

Companies Expand Training and Apprenticeship Programs

Organizations across the construction and facilities industries are responding by investing in workforce development initiatives and hands-on training.

Unlimited Service Group, a coalition of companies servicing commercial kitchens nationwide, has expanded its internal training pipeline through its Training Unlimited program.

“The training process involves ‘a mix of sitting in a classroom [and] traditional school learning, plus some hands-on equipment learning within that classroom,’” Kristen Nowak, USG president of field services, told Facilities Dive. “And then we pair [trainees] with senior technicians out in the field. It’s that mix of classroom and on-the-job [training] that we think is really critical. That is the ticket to moving them into a [role as a] future technician in our industry.”

JLL reported that the percentage of students considering apprenticeships, vocational schools and technical programs climbed from 12% in 2018 to 38% in 2024. Community college enrollment has also increased 12% over the last five years, compared with 3% growth at four-year institutions.

Emerging technologies are also reshaping the image of skilled trades careers. JLL said smart building systems, IoT platforms, LiDAR scanning and thermal imaging tools are making the industry more attractive to younger, tech-savvy workers.

“It’s a ‘compelling proposition for young, digitally native talent entering the workforce,’” the report states, “and a defining opportunity for the industry to rebrand skilled trades as the next-generation, technology-empowered profession it has become.”

JLL Research estimates companies are now investing approximately $1 billion annually in robotics for the building trades, with robots increasingly assisting in inspections, maintenance and security operations.

Originally reported by Joe Burns, Reporter in Construction Dive.

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