
To meet growing demand, the U.S. construction industry must attract nearly half a million new workers, according to the Associated Builders and Contractors (ABC). The trade organization, representing over 23,000 builders and contractors, reports that 439,000 new workers are needed to keep up with expected activity in 2025, and another 499,000 will be required in 2026.

ABC’s forecast suggests that nearly one million new construction workers will be needed over the next two years, resulting in a significant gap as high industry activity looms. ABC’s Chief Economist, Anirban Basu, explained, “If [construction] fails to do so, industrywide labour cost escalation will accelerate, exacerbating already high construction costs and reducing the volume of work that is financially feasible.”
Basu also highlighted the increase in wages, saying, “Average hourly earnings throughout the industry are up 4.4% over the past 12 months, significantly outpacing earnings growth across all industries.” This wage boost may continue, especially if shifting immigration policies under the Trump administration lead to fewer migrant workers.

The construction industry’s need for new workers is heightened by potential policy changes. Basu warned, “Potential changes to immigration policy will likely constrain worker availability.” He noted that prior immigration levels helped to boost the workforce, but any significant policy changes could result in labor shortages.
Despite these challenges, Basu pointed to improvements in the industry, especially this year. “The improvement can be traced to two primary factors: First, construction spending is expected to grow at its slowest pace in years throughout 2025, especially in interest rate-sensitive segments like homebuilding. Second, the industrywide workforce has become significantly younger over the past several quarters, with the median construction worker now younger than 42 for the first time since 2011.”
ABC will continue working with federal officials to address the worker shortage. Michael Bellaman, ABC’s president and CEO, emphasized the importance of ongoing efforts to attract talent. He stated, “The data on the number of young people choosing a career in construction suggests that employing practical technology and innovation in educational programs and on jobsites helps maximize the productivity and efficiency of the construction workforce.”
ABC’s workforce development strategy is designed to attract new entrants and upskill them through both industry-driven and government-registered apprenticeship programs. This approach is aimed at filling gaps and ensuring a steady pipeline of skilled labor.
For its construction spending and employment forecast, ABC uses a proprietary model, integrating historical construction data and projections on construction spending, job openings, retirements, and industry exits. This model estimates that approximately 3,550 new jobs are needed for every billion dollars of additional construction spending.
ABC remains committed to working toward reducing these workforce gaps and ensuring the construction industry remains equipped to meet demand.
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