A recent survey by the Associated General Contractors of America and NCCER found that workforce shortages are a primary cause of project delays in the construction industry. The survey, which included nearly 1,400 firms from across the country, reported that 92 percent of contractors have difficulty filling open positions.
Ken Simonson, chief economist for the association, explained during a virtual media briefing, “As the survey results show, construction workforce shortages aren’t just a problem for the construction industry. Construction projects of all types are being delayed because there aren’t enough qualified workers available for firms to hire.”
The report showed that most hiring firms face challenges finding qualified candidates. Specifically, 88 percent have openings for craft construction workers and about four-fifths are seeking salaried employees. The lack of qualified candidates is attributed in part to insufficient federal investment in construction workforce training and education. According to Simonson, 57 percent of surveyed firms said applicants lack essential skills or proper licensing.
The use of temporary work visa programs remains limited within the industry; only 10 percent of respondents rely on programs such as H-2B visas to secure staff.
Immigration enforcement has also affected labor availability. Twenty-eight percent of surveyed firms experienced direct or indirect impacts from immigration actions over the past six months. Five percent reported jobsite visits by immigration agents, while 10 percent saw workers leave or not appear due to actual or rumored enforcement activities. Subcontractors at 20 percent of firms lost workers as a result.
The effects varied by state: Georgia saw 75 percent of its contractors impacted compared with only eight percent in Idaho and nine percent in Alaska.
Worker shortages were cited as the most common reason for project delays—45 percent reported experiencing such delays due to staffing issues involving their own or subcontractors’ employees. Overall, 78 percent said at least one project had been delayed in the last year.
To address these challenges, seven out of eight companies increased base pay over last year and 42 percent raised spending on worker training and professional development. Firms are also adopting technology-driven recruitment strategies: more than half added online outreach efforts such as social media campaigns or digital advertising targeting younger applicants; a similar share engaged with career-building programs at educational institutions.
Tariffs have added another layer of complexity: sixteen percent indicated that tariffs led to postponed or canceled projects; forty-one percent raised prices because of tariffs; thirty-nine accelerated purchases ahead of new tariffs; but only fourteen switched from foreign to domestic suppliers as a result.
Boyd Worsham, President and CEO of NCCER stated: “The survey underscores the urgent need to grow our construction workforce and illustrates there is a great need to continue our recruiting efforts and provide accelerated learning opportunities... By expanding access to industry training and career and technical education, we can prepare people for meaningful careers, strengthen contractors’ ability to deliver projects and build the communities we all depend on. At NCCER, every day we see that investing in people positively impacts their lives and expanding these opportunities will give more people the chance to build successful careers while providing contractors the workforce they need.”
Simonson called on Congress and federal officials to double funding for high school career and technical education programs. He also advocated passage of a new Workforce Innovation and Opportunity Act with at least half its funds directed toward workforce training initiatives.
Simonson emphasized it will take years to rebuild domestic training infrastructure but urged immediate action: “Congress and the Trump administration must provide more lawful pathways for people to enter into, or remain in, the country to work in construction.” He suggested establishing a new temporary visa program specific for construction jobs.
Additionally, he encouraged resolution of trade disputes with major U.S trading partners like Canada, Mexico and China so as “to eliminate the threat of punitive tariffs,” adding “Eliminating market uncertainty will help boost demand for many types of construction projects.”
“Our goal is to make sure the construction industry remains a driver of economic growth in this country,” Simonson noted. “The best way to do that is to ensure it has the workforce, and the demand needed to continue building the American economy.”
The annual Workforce Survey was conducted by Associated General Contractors together with NCCER during late July through early August.