Contractors Continue to Struggle with Workforce Recruitment Amid Ongoing Labor Shortage

Contractors are intensifying their efforts to hire more workers, but finding qualified employees remains a daunting challenge. A recent survey by the Associated General Contractors of America (AGC) reveals the extent of the issue, highlighting the difficulties the industry faces in staffing both craft and salaried positions.

According to the survey, most U.S. contractors have increased their headcount over the past year. Despite this, more than nine in ten contractors report difficulty in finding the skilled workers they need. The demand for both hourly craftworkers and salaried contractors has grown, but so has the struggle to fill these roles.

“What this year’s survey makes clear is that our nation’s failure to invest in construction workforce education and training programs is having a real, measurable impact on the country’s ability to build infrastructure and other construction projects,” said Jeff Shoaf, CEO of AGC, in a statement. “These impacts include higher costs, longer construction schedules, and a significant number of delayed and/or canceled projects.”

The report highlights that the labor shortage is not just a hiring issue but also a significant factor in project delays. “A majority — 54 percent — of respondents reports experiencing project delays due to shortages of their own or subcontractors’ workers,” said Ken Simonson, chief economist of AGC, in the statement. “And 80 percent of firms report experiencing at least one project that has been canceled, scaled back, or postponed.”

The main reasons for the hiring difficulties include a lack of qualified candidates, with 62% of respondents citing this issue, and reliability concerns, with 50% reporting that new hires either fail to show up or quit shortly after starting.

The survey also identified the most challenging positions to fill. Among salaried roles, superintendents (83% of respondents), project managers/supervisors (81%), and estimating personnel (78%) were the toughest to staff. For hourly craft labor positions, the most difficult to fill were mechanics (83%), cement masons (83%), and plumbers (80%).

AGC points to insufficient government support for construction-specific training programs as a significant factor in the ongoing labor shortage. “One reason it is so difficult for firms to find people is because federal officials have failed to properly invest in construction workforce training and education,” said Shoaf.

A study released in June by the Progressive Policy Institute, in partnership with AGC and Procore, revealed that out of the $139.5 billion the federal government spends annually on postsecondary education, only $28.3 billion is directed toward workforce education and training programs. The remaining $111.3 billion supports traditional degree programs.

In response to these challenges, builders are implementing various strategies to address the workforce shortage. “The construction industry is, however, taking a range of steps to address these shortages,” said Simonson.

As the industry continues to grapple with these persistent staffing issues, the need for increased investment in workforce training and education becomes ever more critical.

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