U.S. commercial developers are facing a massive labor shortage, with 456,000 unfilled construction jobs as of February 2024, the highest in 20 years. Nearly 92% of firms report hiring challenges, and 45% cite labor shortages as the top reason for project delays. This shortage is particularly severe in fast-growing sectors like data centers, advanced manufacturing, and infrastructure, which demand specialized skills and precision.
Key challenges include:
Solutions include:
With demand for workers expected to hit 349,000 by 2026, addressing these challenges is critical to keeping projects on time and within budget.
Construction Labor Shortage Statistics 2024: Key Challenges and Workforce Data
Staffing for large-scale construction projects isn’t just about filling positions - it’s a complex puzzle with challenges that can derail timelines and budgets. From a lack of skilled workers to outdated hiring practices, these issues demand a thoughtful approach to keep projects on track.
The construction industry is facing a serious skills gap at all levels. By 2024, 94% of contractors reported struggles in hiring craft workers, while 92% of firms found it difficult to fill salaried roles. Specialized positions are even harder to fill: 76% of firms can’t find surveyors, 78% struggle with estimators, and 79% face shortages of pipefitters and welders.
Projects like data centers, semiconductor fabs, and advanced manufacturing facilities require expertise in areas such as tool calibration, clean room construction, and specialized MEP (mechanical, electrical, and plumbing) systems. Unfortunately, these niche skills are in short supply.
Adding to the problem, the industry is bracing for a wave of retirements. In 2020 alone, 3.2 million baby boomers exited the workforce, taking decades of experience with them. Meanwhile, fewer young people are entering construction, often drawn to jobs with better working conditions or remote options. To meet demand, the nonresidential construction sector will need 300,000 to 600,000 new workers annually. Federal immigration enforcement has also played a role, with 28% of firms reporting workforce impacts in the latter half of 2025.
"The government's lack of investment in construction workforce programs is having a real, measurable impact on the country's ability to build infrastructure and other construction projects." – Jeff Shoaf, CEO, Associated General Contractors of America
Even when firms manage to hire qualified workers, keeping them is another challenge. An alarming 50% of new hires either fail to show up on their first day or quit shortly after starting. This constant churn forces companies to repeatedly recruit and onboard construction labor, wasting time and resources.
The industry’s overall turnover rate reached 4.5% as of February 2024. Many companies rely on reactive hiring instead of building a steady pipeline of talent, leading to a cycle of rushed recruitment. Lengthy hiring processes often result in losing candidates to faster-moving industries like technology or transportation. Between 2019 and 2021, wages in construction rose by 7.9%, but industries like transportation and warehousing saw even steeper increases of 12.6%.
High turnover doesn’t just disrupt staffing - it directly impacts project outcomes. Productivity can drop by up to 40%, while project timelines may stretch by 20% to 25%. Nearly 80% of construction firms experienced delays in the past year, with 45% to 54% citing worker shortages as the primary cause.
Some companies are taking proactive steps. For example, Rhys Ivy Construction in Kansas City launched a three- to five-week paid training program in 2024. The program teaches basic math, financial literacy, and certifications like OSHA 10-Hour and CPR to prepare workers for skilled trades. As Latoya Goree Smith, Principal at Rhys Ivy Construction, explained:
"What some might fail to realize is that... you have to realize it's not just workforce training, it's more of a holistic approach to supporting these individuals gaining entry into the skilled trades." – Latoya Goree Smith
While competitive wages are important, they’re not enough to attract and retain top talent. Workers today value more than just pay - they want flexibility, supportive management, and clear career paths. Unfortunately, the construction industry struggles to offer these non-wage benefits, making it less appealing compared to other sectors.
Labor costs in some areas have doubled since pre-pandemic levels, but workers often find similar pay in less physically demanding jobs with better schedules. This shift means construction firms relying solely on higher wages might miss the mark when it comes to what motivates modern workers.
Another issue is the mismatch between the skills employers need and what candidates bring to the table. Traditional construction credentials don’t always align with the demands of today’s complex projects. For example, demand for people management skills has grown by 77% since 2019, and business management skills by 41%. Digital skills like cloud computing, data modeling, and Building Information Modeling (BIM) are now considered essential by 91% of respondents, yet 57% of applicants lack the necessary qualifications.
Smaller firms face additional challenges. Larger companies with revenues over $500 million are more likely to offer higher pay and better benefits, pulling talent away from smaller contractors. This creates a talent gap that not only increases costs but also leads to quality issues, rework, and extended timelines - compounding the financial strain on projects.
Finding and keeping the right talent is essential for keeping projects on track and within budget. Smarter hiring strategies, workforce development, and building relationships early can make all the difference.
General job boards cast a wide net, but platforms like iRecruit.co focus exclusively on connecting commercial developers with prequalified professionals in industries like data centers, advanced manufacturing, and MEP systems. Their screening process ensures candidates meet specific technical requirements, are genuinely interested in the role, and have compensation expectations aligned with the position - saving time and effort for hiring teams. Ideal for roles like commissioning managers, MEP coordinators, and program directors, this platform simplifies the recruitment process.
Time is critical in a competitive job market. iRecruit.co promises to fill roles within 30 days, using a streamlined 21-day process that covers discovery, sourcing, and interviews. Plus, their 90-day replacement guarantee reduces risk: if a hire doesn’t work out within three months, they offer a search credit at no extra cost. With over 200 completed projects and a 90% client retention rate, their track record speaks for itself.
"If you cannot staff the work, you cannot win it, and if you staff it poorly, you will pay for it in schedule, margin, and reputation." – Brian Binke, Founder & CEO, The Birmingham Group
For developers lacking internal HR teams, iRecruit.co also offers full-service outsourcing. This includes everything from drafting job descriptions to onboarding, allowing firms to focus on their projects instead of recruitment logistics. Their pricing aligns with project needs, featuring success fees based on first-year salaries and discounts for hiring multiple roles.
Relying on last-minute hiring isn’t enough to address the skilled labor shortage. Developers are moving toward proactive strategies, maintaining live talent pools of pre-vetted candidates who can step in as soon as projects begin.
Early collaboration is becoming the norm. Sharing project plans years in advance with contractors helps secure labor before competition heats up. This approach is especially important as major projects, such as data centers, expand into states like Indiana and Louisiana, where competition for local talent is fierce.
"Getting your team together is critical... because there's only so many journeymen in the Northern Virginia area. There's only so many steam fitters." – Kurt Wallner, Project Executive, DPR Construction
Developers are also leveraging tools like Applicant Tracking Systems (ATS) and AI-driven sourcing to speed up hiring. These tools can reduce time-to-place by up to 35%, cut time-to-hire by 27%, and lower cost-per-hire by 21%. Mobile-friendly platforms further reduce candidate drop-offs by 38%, while trade-specific screener questions filter out unqualified applicants early.
In sectors like data centers, where specialized skills are in short supply, firms are recruiting leaders from industries like healthcare, life sciences, and semiconductor manufacturing. These professionals bring valuable experience in managing complex systems and mission-critical environments.
"Specialized search partners help because they already know the market and the players. They can have a confidential conversation with a leader who is not actively looking." – Brian Binke, Founder & CEO, The Birmingham Group
Highlighting technical challenges - like power density, redundancy, or clean room construction - can attract problem solvers for high-stakes roles. Consolidating interview rounds also ensures top candidates don’t slip away to faster-moving competitors.
Securing talent is only half the battle - retaining and developing it is just as important. Strong onboarding programs, for example, can significantly improve retention by helping new hires understand their roles in complex projects. Yet, 70% of construction businesses lack effective onboarding processes.
"Strong onboarding improves retention. New hires want good onboarding to understand their role in construction projects." – ABC Greater Tennessee
Mentorship programs are another effective tool. Pairing seasoned professionals with new hires facilitates knowledge transfer and helps teams gel faster. With over 20% of the construction workforce aged 55 or older, mentorship and succession planning are essential for preserving expertise.
Clear career paths also play a big role. Workers are more likely to stay with firms that offer opportunities for promotions, leadership roles, and skill certifications. Companies focusing on skills-based advancement are 98% more likely to retain top performers.
Cross-training employees boosts both resilience and productivity, with gains of 15% to 25%. Flexible schedules, like four-day workweeks or staggered shifts, can reduce burnout and improve morale. Limiting work hours to 50–60 per week and maintaining open communication with trade partners also helps prevent overcommitment.
"The biggest tool that we're using to make sure our trade partners aren't over-committing is communication." – Connor Toomey, Senior Project Manager, HITT Contracting
Fostering a strong safety culture builds loyalty and trust. Recognizing safe practices and individual contributions makes workers feel valued and creates a positive work environment.
"Putting safety first can help with retention and morale within your workforce. Workers also like to see safety as a priority." – Essel Environmental
Competitive wages, health benefits, retirement plans, and performance-based bonuses remain critical for attracting and keeping talent. Developing soft skills alongside technical expertise also prepares workers for leadership roles, addressing the growing demand for people management skills, which has risen by 77% since 2019.
Addressing workforce gaps requires partnerships beyond traditional hiring methods. Vocational schools, apprenticeships, and industry networks offer access to talent before they hit the broader job market. Building relationships with vocational instructors and offering tailored apprenticeships create pipelines of skilled workers ready for mission-critical projects.
Expanding the talent pool is equally important. With women making up just 30% of the construction workforce, targeting underrepresented groups - like women, veterans, and second-chance citizens - can bring fresh perspectives and fill labor gaps.
Industry organizations and trade associations also provide networking and training opportunities, keeping firms connected to emerging talent and trends. With the construction industry projected to need 499,000 more workers by 2026, partnerships with vocational schools, trade programs, and government agencies are key to building a steady workforce.
Staffing large construction projects has become an increasingly pressing issue. With 92% of construction firms struggling to fill roles and 45% reporting delays due to labor shortages, the industry faces immense pressure to adapt. By 2025, an additional 439,000 workers will be needed, while nearly 40% of the current skilled workforce is projected to retire by 2031. Developers who delay hiring risk project delays, rising costs, and missed opportunities.
Addressing these challenges requires proactive measures. A targeted approach - combining specialized recruitment, talent pipeline development, and strategic partnerships - can help turn the tide. Companies like iRecruit.co connect developers with prequalified professionals in sectors like data centers, advanced manufacturing, and infrastructure, offering a 90-day replacement guarantee to minimize hiring risks.
Forward-thinking firms are already investing in long-term talent strategies. By using advanced tools and building relationships with trade schools and industry groups well in advance, these companies position themselves to tackle workforce shortages effectively. For more tips on managing workforce challenges in mission-critical construction, check out our jobs and workforce guide.
Ready to solve your staffing needs? Visit iRecruit.co to connect with qualified construction professionals and keep your projects moving forward.
The construction industry is grappling with a significant shortage of skilled labor, and several factors are fueling this challenge. One of the biggest hurdles is the limited investment in workforce training and education programs. Without robust training pipelines, fewer qualified professionals are entering the field. On top of that, federal funding for construction-specific training lags behind what other industries receive, further shrinking the talent pool.
Another roadblock is the struggle to attract new talent. Outdated stereotypes about construction careers discourage many potential workers, and the industry’s demand for specialized skills or prior experience makes it tough for newcomers to break in. To complicate matters, other industries are competing for the same workforce, often offering higher wages, which puts additional pressure on construction employers.
These challenges are hitting large-scale projects particularly hard, especially in critical areas like infrastructure development and advanced manufacturing, where delays and labor shortages can have far-reaching consequences.
Construction companies looking to retain skilled workers need to think beyond simply boosting salaries. Building a supportive workplace culture, offering clear paths for career growth, and encouraging a healthy work-life balance are all essential strategies. For instance, providing targeted training sessions or implementing flexible work schedules can go a long way in making employees feel appreciated and motivated to stick around.
Other effective approaches include acknowledging employee accomplishments, fostering a sense of purpose in daily tasks, and holding regular "stay interviews" to address any concerns before they lead to turnover. Additionally, investing in professional development - such as employer-sponsored courses or skill-building programs - not only strengthens employee loyalty but also ensures a more stable and capable workforce over time.
Building a dependable talent pipeline for large-scale construction projects takes careful planning and forward-thinking strategies. Developers should broaden their recruitment efforts by forming partnerships within the industry and adopting inclusive hiring practices to draw in a wide range of skilled workers. Providing competitive pay packages - including higher wages and clear paths for career growth - can make these roles more attractive to sought-after professionals.
Addressing labor shortages, particularly for specialized positions, requires investing in focused workforce training and education initiatives. Partnering with trade schools and educational institutions can equip candidates with the skills needed to handle the unique demands of large-scale construction. Together, these approaches can help developers maintain a steady flow of qualified workers ready to take on the complexities of major projects.
