A new forecast by the Associated Builders and Contractors (ABC) is estimating that an estimated 439,000 net new workers are needed this year to meet anticipated demand for construction services.
The forecast also predicted the construction industry will need to bring in 499,000 new workers in 2026 if spending picks up due to potential lower interest rates.
“While the construction workforce has become younger and more plentiful in recent years, the industry still must attract 439,000 new workers in 2025 to balance demand and supply,” said ABC Chief Economist Anirban Basu. “If it fails to do so, industrywide labor cost escalation will accelerate, exacerbating already high construction costs and reducing the volume of work that is financially feasible. Average hourly earnings throughout the industry are up 4.4% over the past 12 months, significantly outpacing earnings growth across all industries.”
Basu added the median construction worker is currently younger than 42 for the first time since 2011, which is expected to slow the pace of retirements.
“Despite that improvement, contractors will struggle to fill open positions,” said Basu. “This will be especially true in areas where manufacturing and data center megaprojects are underway. More than $1 in every $5 spent on nonresidential construction currently goes toward manufacturing projects, and those projects are absorbing a significant share of the labor force in their respective regions.”
