The nation’s failure to invest in construction workforce education and training programs is having a measurable impact on the country’s ability to build infrastructure and other projects, according to a workforce survey conducted by the Associated General Contractors of America (AGC) and Arcoro, an HR technology company supporting the construction industry. The survey revealed that 94 percent of contractors report difficulties filling open positions, prompting calls for better federal workforce policies.
“The most likely path to addressing construction workforce shortages is for the federal government to adopt better workforce policies,” said Jeff Shoaf, AGC's chief executive officer, during a virtual media briefing. “Federal officials need to support, instead of undermine, our national infrastructure and economic development policies.”
The survey indicated that 94 percent of construction firms nationwide have open positions they are trying to fill. Among these firms, 94 percent struggle particularly with filling craft workforce positions that perform most onsite construction work. Nearly one-in-three contractors (28 percent) reported having at least 11 unfilled craft positions as of June 30.
Workforce shortages are affecting contractors’ ability to complete projects. Fifty-four percent of contractors reported experiencing project delays due to labor shortages. These delays were more frequently attributed to labor shortages than other issues like supply chain challenges.
Shoaf pointed out that federal officials have not adequately invested in construction workforce training and education. A recent report by AGC and the Progressive Policy Institute found that federal investment in encouraging students to earn four-year degrees is four times higher than funding for workforce development programs in fields like construction.
The survey also highlighted that 62 percent of respondents believe available candidates lack required skills or certificates. Forty-three percent noted employees lack necessary documentation such as a driver’s license or work permit, while half reported new hires fail to show up or quit shortly after starting.
Contractors are taking measures to address labor shortages. Ninety-one percent increased base pay rates for hourly positions over the past year. Additionally, 57 percent adopted online recruitment strategies targeting younger workers, and 51 percent engaged with career-building programs such as high schools or training facilities.
Firms are also investing more in internal training programs; 42 percent reported increasing spending on professional development initiatives. One-in-four firms (26 percent) have enhanced their use of online learning programs.
Human resources technology is being utilized by some firms to tackle these challenges; one-in-four firms use technology for delivering training programs. Furthermore, 34 percent partnered with third-party organizations for establishing training courses and professional development opportunities.
“As a technology company focused on providing solutions designed for contractors...the shortage of qualified employees in the industry is something we understand first-hand from our customers,” said Carrie Gardenhire, Director of Association Partnerships at Arcoro.
AGC has undertaken several initiatives aimed at mitigating labor shortages within the industry including targeted digital advertising campaigns, creating recruiting resources for member firms and chapters, and hosting events focused on sharing successful workforce development strategies.
AGC chapters run various training and recruitment programs in collaboration with local school districts including new construction academies and apprenticeship programs among others. However, association officials emphasized the need for further action from Congress and the White House regarding funding increases for education and training under acts like the Workforce Innovation and Opportunity Act and Perkins Vocational & Technical Education Act.
“Considering all that this industry...is doing...we are confident that better federal workforce policies will make a meaningful difference,” Shoaf added.
The Workforce Survey was conducted in late July through early August with nearly 1,500 participating firms representing a broad cross-section of the construction industry.