The U.S. construction industry is facing a worker shortage, with an estimated 349,000 additional workers needed by 2026 and 456,000 more by 2027 beyond regular hiring. Federal programs like the CHIPS Act and Infrastructure Investment and Jobs Act are driving demand for skilled labor, especially for large-scale projects. Meanwhile, 94% of firms report hiring challenges, and 54% cite labor shortages as a major cause of project delays.
Here are the key strategies to address these gaps:
Construction Workforce Shortage Statistics and Key Recruitment Strategies 2026-2027
Delays in hiring can lead to project setbacks and increased costs. To avoid this, construction firms need to plan ahead - forecasting labor needs anywhere from six months to two years in advance. This is especially crucial for large-scale projects funded by the $550 billion Bipartisan Infrastructure Law. By using scenario planning strategies, companies can map out workforce requirements, considering both immediate needs and potential disruptions. But forecasting alone isn't enough; building relationships early is key to maintaining a reliable talent pipeline.
Top-performing construction firms are shifting their focus from last-minute hiring to cultivating relationships with future employees well before they're needed. A great example of this is McCarthy Building Companies, which runs an internship program that placed 300 interns from over 75 colleges on more than 100 projects as of February 2026. Impressively, 90% of interns in the Southern Pacific region received offers to return for another internship or a full-time position.
"About 70% of what's truly learned in construction is learned on the job. Mentoring, judgment and teamwork can't be automated."
– Kim Trotter, Early Career Program Manager, McCarthy Building Companies Inc.
McCarthy also hosts "STEMstruction" events, where 20–50 high school students get hands-on experience with activities like operating mini-excavators. These events help introduce younger students to construction careers, making the industry more approachable and appealing. By engaging students and their families early, firms can showcase the stable salaries and clear career paths that construction offers. For more insights on workforce development in construction, visit iRecruit.co.
While early recruitment efforts and internships help build a general talent pool, specific skill shortages - like those for electricians, civil engineers, welders, and project managers - require a more targeted approach. To tackle these gaps, many firms are broadening their reach by collaborating with groups such as Helmets to Hardhats (a veterans' organization), correctional facilities, and diverse community networks. One AGC member noted that 90% of participants in its pre-apprenticeship program either secured jobs with construction firms or entered registered apprenticeships.
Additionally, firms are focusing on internal growth by creating clear career pathways. For instance, transitioning General Foremen into Assistant Superintendent roles helps develop future project managers. To support these transitions, companies are using "laptop-ready" onboarding programs that train field leaders on digital tools and communication workflows, making their move to office-based roles smoother.
The ongoing labor shortages in construction demand a shift in hiring strategies. It’s no longer about simply filling positions - it’s about finding people with the right skills. In 2024, industries faced significant challenges recruiting pipefitters (79%), welders (79%), estimators (78%), and surveyors (76%). Joe Supino, Segment Director at Actalent, highlights the importance of flexibility:
Today's construction leaders can't afford to require every new hire to meet every bullet in the job description. Be flexible and ready to train on the job.
By focusing on skills and potential rather than rigid qualifications, companies can widen their talent pool and better prepare for the demands of critical roles.
Mission-critical projects in areas like data centers, infrastructure, and advanced manufacturing require more than just traditional experience - they demand specialized skills. For example, there’s been a 77% increase in demand for people management skills since 2019, along with a 41% rise in business management requirements. Employers are now looking for project managers who can handle digital workflows, estimators with a strong grasp of data analytics, and superintendents who combine technical know-how with emotional intelligence. These roles call for professionals who can navigate modern tools and management practices, going beyond the basics of construction expertise. For more strategies on workforce development, check out iRecruit.co.
Identifying the right skills is just one part of the equation - companies also need to streamline their hiring processes to stay competitive. Delays can cost you top talent, as qualified candidates often drop out if responses take too long. To combat this, some firms are adopting contingent hiring models, offering trial periods before committing to full-time roles. Additionally, 45% of construction firms have upgraded their performance management systems to speed up skill development after hiring. Quick and efficient hiring practices are no longer optional - they’re essential in today’s fast-paced market.
Closing workforce gaps requires a strong focus on both specialist trades and digital skills. For mission-critical projects where precision and technology are central, recruitment strategies must balance traditional trades with modern technical expertise. The construction industry is grappling with a dual challenge: a shortage of hands-on tradespeople and a growing need for digital competencies. For example, the demand for metal fabrication skills has surged by over 40% since 2019, while mathematical and data modeling skills have seen increases of approximately 15%, 13%, and 11%, respectively. The key is integrating these trades with emerging digital tools.
Victor Reyes, Managing Director at Deloitte Consulting LLP, highlights this shift:
"Changing skill requirements have prompted some companies to employ a 'skills-based' approach that focuses on employees' abilities and competencies rather than their job titles or formal qualifications."
Digital skills have become a cornerstone of modern construction, with 91% of industry professionals now viewing them as essential. This shift is driving changes in recruitment. For instance, Assistant Superintendents are expected to have immediate digital proficiency through targeted "laptop-ready" onboarding. McCarthy Building Companies exemplifies this approach, reporting in February 2026 that they placed 75 interns across their Southern Pacific projects, with 90% accepting return offers.
Looking ahead, 44% of current skill requirements in infrastructure are expected to evolve by 2028. Companies adopting a skills-based hiring approach are 98% more likely to retain top-performing employees. For high-stakes projects in areas like data centers and advanced manufacturing, platforms like iRecruit.co specialize in finding candidates who blend construction expertise with digital know-how.
Effective workforce planning means addressing skill needs before they become critical gaps. As Kim Trotter, Early Career Program Manager at McCarthy Building Companies, explains:
"AI can draft a checklist, but it can't run a concrete pour... About 70% of what's truly learned in construction is learned on the job."
Pairing tech-savvy new hires with experienced tradespeople ensures valuable knowledge transfer. Companies are also turning to platforms like BuildWitt for specialized training in areas like pipe laying and underground work. The aim isn’t just to meet today’s needs but to prepare for the technology-driven demands of the future. These forward-thinking strategies pave the way for recruit construction labor in a tight market and greater efficiency in workforce development.
The construction industry is at a crossroads: by 2025, half of all workers will need additional training to meet the demands of advancing technology. To tackle this, companies are blending traditional trade expertise with modern digital skills. In 2023, contractors funneled over $800 million into trade and specialty training programs. Similarly, the Associated Builders and Contractors (ABC) allocated more than $1.5 billion in 2022, offering craft, leadership, and safety education to nearly 1.3 million attendees.
Emerging technologies like augmented reality (AR) and virtual reality (VR) are reshaping how workers gain skills. These tools allow employees to practice tasks like crane operation or fall protection in a safe, controlled environment. While these innovations are game-changers, hands-on training remains vital. Practical experience ensures workers can apply technical knowledge and make sound decisions in real-world scenarios. For projects that demand niche expertise, platforms such as iRecruit.co help connect contractors with candidates who have both foundational skills and the ability to quickly adapt to new challenges.
The first step in effective upskilling is understanding your workforce's needs. Regular skills gap assessments help identify areas for improvement before they impact project timelines. For example, McCarthy Building Companies conducts semi-annual talent reviews for field leaders. This process not only evaluates readiness for superintendent roles but also highlights technical and leadership gaps.
Companies that prioritize skills-based strategies see measurable benefits. They are 98% more likely to retain top performers. Since 2019, the need for people management skills has jumped by 77%, while business management skills have risen by 41%. Internal mobility programs - like job rotation and cross-training - are particularly effective. These initiatives let employees explore different roles, addressing skill shortages without relying on external hires. Integrating these efforts into the recruitment process ensures a workforce that’s ready to meet demands.
Combining training with recruitment creates a smoother path to workforce readiness. Structured career development programs, such as guiding craft professionals from foreman to superintendent roles, not only close skill gaps but also offer clear career progression. Early engagement through industry events, paired with formal training initiatives, builds a steady pipeline of qualified talent.
Safety training is another crucial investment, accounting for 60% of workforce development spending in 2023. Comprehensive safety orientations for all new hires - regardless of prior experience - reinforce workplace norms and reduce incident rates. Pre-apprenticeship programs, which typically last 6–12 weeks, provide a fast track for new workers. These programs focus on essential skills like trades math and safety, preparing participants for formal apprenticeships.
Slow hiring can derail project timelines and inflate costs. In 2022 alone, U.S. contractors faced estimated losses of $30–$40 billion due to inefficiencies in labor management, including delays caused by staffing gaps. Automating recruitment tasks is a practical way to address these challenges.
Applicant Tracking Systems (ATS) play a pivotal role for construction firms. These platforms handle tasks like posting job ads, scheduling interviews, and managing compliance paperwork, often cutting hiring cycles by as much as 60%. In fact, 86% of hiring teams using ATS software report faster hiring times. For projects where timing is critical, implementing ATS can make all the difference.
Mobile optimization is another game-changer. Many field workers rely on their smartphones to find and apply for jobs. A user-friendly, mobile-optimized application process can reduce candidate drop-off rates by 38%. When paired with internal database strategies, this approach ensures quicker and more efficient staffing.
The quickest hires often come from candidates you’ve already screened. Michael Carter, President of Talent Solutions at Abstrakt, highlights how recruiters using internal talent databases can cut placement times from an average of 41 days to just 27 days - a 35% improvement. Having a pool of pre-qualified candidates ready to go eliminates the need to start fresh with every new project.
"Your ability to staff projects swiftly and reliably can be as decisive in winning future work as the quality of your bid itself."
- Michael Carter, President of Talent Solutions
Building long-term talent pipelines further strengthens your recruitment strategy. Beyond internal databases, maintaining active engagement with past applicants can accelerate hiring. Candidate Relationship Management (CRM) tools help keep these candidates engaged, creating a reserve of warm leads for urgent roles. Tools like iRecruit.co specialize in managing pre-qualified talent pools for construction management, ensuring you have immediate access to skilled professionals when needed.
As companies refine their hiring strategies, verifying certifications and compliance remains crucial for maintaining a skilled and reliable workforce.
Ensuring candidates possess the right certifications and technical expertise is essential, especially for roles tied to critical infrastructure. In 2023, contractors allocated nearly 60% of workforce development budgets to safety training.
For positions in pharmaceutical facilities, it's important to confirm that candidates meet Good Manufacturing Practices (GMP) and cleanroom standards. Additionally, digital skills are becoming indispensable - 91% of industry professionals agree that abilities like cloud computing and data modeling are now baseline requirements. Verifying these qualifications during the recruitment phase can help avoid costly delays down the line.
The compliance landscape has grown more intricate. For example, firms pursuing projects funded by the $550 billion Bipartisan Infrastructure Law must verify Disadvantaged Business Enterprise (DBE) certifications to stay competitive. Caroline Raffetto of the Construction Owners Club emphasizes:
Disadvantaged business enterprise (DBE) contractors and diverse workforces are critical to the construction industry based on the guidelines of the infrastructure law.
With 92% of firms facing challenges in finding qualified talent and 41% of the workforce nearing retirement by 2031 , it's more important than ever to conduct thorough yet efficient verification. Adding to this challenge, immigration enforcement has impacted nearly 33% of firms as of early 2026. Verifying lawful work authorization has become a non-negotiable step. Platforms like iRecruit.co simplify this process by offering pre-screened, interview-ready candidates, reducing hiring timelines while ensuring compliance. Incorporating digital verification tools can further streamline these efforts.
Standardized checks for certifications, coupled with AI-powered tools, allow for both compliance and efficiency in hiring. AI-driven candidate matching and digital tracking systems help filter applicants based on required qualifications . Currently, 16% of construction firms are using AI for recruitment and HR tasks, demonstrating how technology can ensure thorough yet efficient verification processes.
Relying on reactive hiring when demand spikes can leave companies scrambling. Instead, scenario planning lets businesses prepare their workforce for both immediate and future needs based on workflow forecasts. This method helps companies anticipate specialized trade requirements ahead of time, reducing the scramble for limited talent.
With 63% of contractors aiming to expand their workforce by 2026 and approximately 499,000 additional workers needed to meet industry demands, planning ahead is no longer optional. Madden Industrial Craftsmen highlights this shift in thinking:
Workforce planning for 2026 is shifting from reactive to strategic and proactive. Hiring managers are no longer asking "How do we fill this role?" They're asking "How do we ensure we always have reliable talent when demand spikes?"
This forward-thinking strategy builds on earlier efforts to develop long-term talent pipelines and accelerate hiring. It lays the groundwork for more adaptable staffing solutions across various roles.
To tackle the challenges of high-demand roles, firms are turning to collaborative contracts that distribute market risks and labor opportunities as projects evolve. The Bipartisan Infrastructure Law is expected to generate 3.2 million jobs in nonresidential construction over the next decade, requiring an influx of 300,000 to 600,000 new workers annually.
To meet these needs, many companies are adopting hybrid staffing models. These include:
Such strategies align with proactive recruitment efforts critical for large-scale projects. Additionally, scheduling with dedicated crews creates consistent work opportunities, encouraging skilled laborers to return for future projects.
Flexible staffing models are only effective if hiring processes are efficient. Following hiring best practices ensures companies can secure pre-vetted talent before demand peaks. Incorporating AI into hiring workflows can significantly cut down the time it takes to fill critical roles.
A skills-based hiring approach - prioritizing specific worker competencies over rigid job titles - also enhances internal mobility and aligns talent with complex project needs. In fact, companies using this method are 98% more likely to retain top performers. Tools like iRecruit.co provide access to pre-screened candidates for essential roles, freeing internal teams to focus on project execution while maintaining a steady talent pipeline.
The construction industry continues to grapple with pressing workforce challenges, requiring thoughtful, long-term solutions. By 2026, the sector will need 349,000 net new workers, and 89% of firms report difficulty finding qualified candidates. Addressing these gaps calls for a comprehensive approach that integrates key strategies: building robust talent pipelines, prioritizing skills over credentials, focusing on specialist trades, investing in upskilling, streamlining decision-making, ensuring compliance, and adopting flexible staffing models. These strategies, when combined, create a framework for operational resilience and workforce stability.
These efforts go beyond solving immediate hiring issues - they establish a foundation for sustained workforce growth. For example, McCarthy Building Companies achieved a 90% full-time offer rate by not only recruiting but also developing talent pipelines, providing interns with meaningful, hands-on experience, and making swift hiring decisions. Similarly, the Idaho Highway Construction Workforce Partnership showcased the impact of upskilling and collaboration with a 92% graduation rate and 80% job placement upon completion.
"The key is action - those who embrace innovation and proactive workforce strategies will be the ones who thrive." - Arcoro
Adopting skills-based hiring has also proven effective in retaining top talent, with higher retention rates for high performers. With construction jobs expected to grow 4% between 2021 and 2031 and federal infrastructure investments fueling ongoing demand, companies that act decisively today will secure a competitive edge. Leveraging platforms like iRecruit.co can streamline access to pre-qualified candidates, enabling internal teams to focus on execution while maintaining a steady talent pipeline. For critical construction projects, this integrated approach ensures skilled workers are always within reach.
When building your team, focus on recruiting construction project managers with hands-on experience in high-stakes projects, such as data centers, infrastructure developments, and energy facilities. These professionals play a key role in keeping budgets on track, meeting deadlines, ensuring safety compliance, and managing intricate technical systems.
It's also important to prioritize mid-level leadership roles and skilled trades that require technical know-how. Developing a steady pipeline for these positions helps create a capable team ready to tackle complex projects and navigate workforce challenges with confidence.
To build a talent pipeline quickly, focus on strategies that deliver results fast. Partnering with trade schools and apprenticeship programs is a smart way to connect with workers who already have relevant skills. Proactive recruitment efforts, like reaching out to underrepresented groups or prioritizing local hiring, can also speed things up. Additionally, keeping a pool of pre-qualified candidates through regular engagement and training ensures you're prepared to meet urgent staffing needs when they come up.
The fastest way to confirm certifications and work eligibility in construction is through official tools like the E-Verify system and Form I-9. E-Verify offers real-time verification by cross-checking employee details with federal databases. Using Form I-9 alongside E-Verify not only ensures compliance with federal laws but also simplifies the hiring process, making it secure and straightforward.
