Workforce
Construction Needs Over 439,000 New Workers in 2025, Says ABC
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To meet the construction industry’s needs in 2025, 439,000 new workers will be required, according to a model developed by Associated Builders and Contractors (ABC). The model uses data from the U.S. Census Bureau’s construction put-in-place survey and U.S. Bureau of Labor Statistics’ payroll construction employment data, while also factoring in job openings, unemployment and projected retirements.
If these numbers can’t be met, then “industrywide labor cost escalation will accelerate, exacerbating already high construction costs and reducing the volume of work that is financially feasible,” Anirban Basu, chief economist at ABC, said in a press release. “Average hourly earnings throughout the industry are up 4.4% over the past 12 months, significantly outpacing earnings growth across all industries.”
However, Basu stated, there is a possibility that “this model [is] overly conservative, meaning worker shortages could be more severe than predicted in 2025.” He notes that the AIA Consensus Construction Forecast, predicting less than 3% increase in construction spending this year, “has underestimated growth by a significant margin during each of the past three years. If inflation dissipates in coming months, borrowing costs will subside and construction volumes will increase. Faster-than-expected immigration over the past few years has also bolstered labor supply, and potential changes to immigration policy will likely constrain worker availability.”
In 2026, the industry is expected to need 499,000 new workers to meet demand, as construction spending is predicted to increase due to lower interest rates.
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