According to the Associated Builders and Contractors (ABC), the United States construction industry will require nearly half a million additional workers this year to meet rising demand.
The US trade organisation, representing more than 23,000 builders and contractors, estimates that 439,000 net new workers will be needed in 2025 to match expected construction activity. That number is set to rise to approximately 499,000 in 2026, bringing the total requirement to nearly one million workers over the next two years.
ABC’s Chief Economist, Anirban Basu, warned that failing to attract enough workers would escalate labour costs, further inflate construction expenses, and limit project feasibility.
“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,” he said.
Wages in the construction sector have already seen significant increases. Over the past year, average hourly earnings have risen by 4.4%, outpacing wage growth across other industries. Further increases may be expected if labour shortages persist or if changes to immigration policy impact the availability of workers.
Basu highlighted concerns over the impact of stricter immigration policies, noting that in previous years, higher immigration rates helped supplement the labour supply. He warned that potential policy changes could restrict worker availability at a time when the industry is already struggling to fill positions.
Despite these challenges, Basu described the 2025 forecast as an improvement compared to previous years. He attributed this to two key factors: slower construction spending growth, particularly in interest rate-sensitive sectors such as homebuilding, and a younger workforce.
The median age of construction workers has fallen below 42 for the first time since 2011, suggesting an influx of younger workers.
ABC said it is working closely with federal officials to find ways to address the skills gap and expand workforce training opportunities. The organisation’s president and CEO, Michael Bellaman, said while progress has been made, there is still much to be done to strengthen the talent pipeline.
“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 job sites helps maximise the productivity and efficiency of the construction workforce,” he said.
Bellaman added that ABC is committed to developing talent through various initiatives, including apprenticeship programs and industry-driven training schemes aimed at attracting and upskilling new workers.
ABC’s projections are based on a proprietary model that analyses historical construction spending data from the US Census Bureau and employment statistics from the Bureau of Labor Statistics. The model estimates that every additional billion dollars of construction spending generates approximately 3,550 new jobs. It also takes into account job openings, unemployment levels, and anticipated retirements in the sector.
With demand for skilled labour expected to remain high, the industry faces an ongoing challenge to recruit and retain workers to sustain the construction boom.
