Construction Still Needs 349,000 Workers in 2026

The Daily Dig:

The U.S. construction industry will need to attract an estimated 349,000 additional workers in 2026 to meet demand, even as higher interest rates and economic uncertainty weigh on parts of the market. The estimate comes from Associated Builders and Contractors (ABC), which models workforce needs based on construction spending, labor force participation, unemployment levels, and projected retirements. The gap is driven primarily by demographics, not short term growth.

ABC reports that more than 20% of the construction workforce is now age 55 or older, with retirements continuing to outpace new entrants. While residential and some commercial segments have slowed, nonresidential construction remains active. Public infrastructure, manufacturing, energy, and data center work continue to pull labor, keeping pressure on skilled trades despite uneven backlogs elsewhere.

ABC also estimates the industry needed roughly 501,000 new workers in 2024 and another 454,000 in 2025 just to keep pace with activity. Productivity gains have not closed the gap. Workforce supply remains constrained by declining vocational enrollment, limited apprenticeship capacity, and competition from other industries, extending hiring timelines across core craft roles.

TheJobWalk Thoughts:

This is no longer a cycle problem. It’s the operating environment. Contractors waiting for softer markets to fix labor shortages are already behind. Retirements don’t pause for rate cuts, and training pipelines don’t refill on demand. The firms holding schedule are planning manpower early and treating workforce development like insurance. Everyone else is absorbing the cost through missed starts and thinner margins.