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The U.S. construction industry must attract an estimated 349,000 net new workers in 2026 to meet labor demand and keep supply and demand in balance, according to a new analysis from Associated Builders and Contractors. The model—based on construction spending forecasts, job openings, unemployment and workforce retirements—projects an even greater need of 456,000 additional workers in 2027 as construction activity is expected to rebound.
ABC Chief Economist Anirban Basu says the industry faces significant headwinds, including an aging workforce and elevated retirement rates, which account for much of the projected 2026 demand even amid slower growth. Failure to recruit enough workers could intensify labor shortages in key regions and trades, driving higher costs and project delays. Additional pressures include immigration uncertainty, high material prices, tariffs and rapid technological change. ABC emphasizes the need to strengthen the construction talent pipeline, expand workforce development efforts and promote construction careers to ensure the industry can meet future demand.
SEE ALSO: TARIFFS DRIVE CONSTRUCTION MATERIALS PRICES UP 2.8% IN 2025
The post Workforce Crunch Ahead: Construction Labor Demand Outpaces Supply first appeared on Construction Executive.
