Understanding and Dealing With the Construction Talent Shortage

In early 2018, an AGC survey found that 82% of contractors expected it to be hard to find workers. Eight years later the survey says the same thing, in some respects more strongly. The 2026 workforce survey from AGC and NCCER was fielded in July and August, got responses from 1,830 people, and found that the shortage persists even though the market is soft.

This post covers what the current data shows, why the gap exists, and what employers can do about it.

What the numbers say in 2026

From the AGC and NCCER survey:

• 87% of firms have open craft (hourly) positions. Of those, 88% say the roles are as hard or harder to fill than a year ago, and 50% say harder.
• 82% have open salaried positions. Of those, 87% say they are as hard or harder to fill, and 41% say harder.
• Half of respondents say available candidates lack the skills, certificates or licenses needed.
• 42% said worker shortages, their own or their subcontractors', delayed projects. That was the most-cited cause. 74% had at least one significant delay in the past year.

The salaried figures matter if you hire project managers, superintendents, estimators and operations leaders. The shortage is not only a craft problem.

Other sources point the same direction. ABC estimates the industry needs to attract 349,000 net new workers in 2026 and 456,000 in 2027. ABC says a majority of the 2026 need comes from retirements.

One data point looks like it contradicts the rest. In BLS's JOLTS release for August 2026, construction had 251,000 job openings, a rate of 2.9%, down from 299,000 (3.5%) in July. Monthly JOLTS figures swing a lot, and a lower count of postings doesn't mean employers found the people. The AGC survey was taken a few weeks earlier and describes the same period from the employer side.

Headcount is mixed too. In the AGC survey, 37% of firms reduced headcount by at least 5% over the past year and 34% increased it by at least 5%. Nearly three-quarters expect to add people in the next 12 months.

Why the gap exists

Three causes come up again and again.

An older workforce. In BLS's 2025 averages, the median age of construction workers is 42.2. Workers aged 55 and older are about 22% of the industry's 12.1 million employed, and workers aged 20 to 24 are about 8.6%. Experienced people are retiring faster than new people are coming in, and the senior roles are where the knowledge sits.

Fewer young people choosing the trades. An earlier NAHB survey found only 3% of young adults leaning toward construction. NAHB's April 2026 survey of adults aged 18 to 25 puts it at 6%. That is better and still low. Of those interested, 73% said pay was the reason.

New competition for the same workers. Of the 28% of AGC respondents that did data center work in the past year, 58% reported more competition for skilled workers and 49% reported wage pressure. In addition, 29% of all respondents reported at least one direct or indirect effect from immigration enforcement over the past six months, including workers leaving or not showing up and subcontractors losing people.

What employers can do

Write specific job descriptions

Vague postings draw unqualified applicants and repel qualified ones. Half of AGC's respondents already say applicants lack the right skills or credentials, so be exact about requirements. Include:

• The exact title, and whether the role is permanent or temporary.
• Required and preferred qualifications, separately: degree, licenses, certifications, years of experience, software.
• The pay range and benefits.
• What the person does day to day, and which project types and sizes.
• How to apply, and who responds.

For executive roles, add the reporting line, the size of the P&L or project portfolio, and why the position is open.

Build a careers page that works

AGC found 49% of firms added or expanded online recruiting in the past year. Candidates search for terms like "construction jobs" and "construction superintendent jobs near me," then judge you by your site. Make sure each open role has its own page that search engines can read, and that applying works on a phone. Keep project photos and crew stories current.

Move quickly

Good candidates have other options. Set interview dates before you post, decide who has authority to make an offer, and keep candidates informed between steps. Do not skip reference and background checks. Do tighten the time between steps.

Pay what the market is paying

More than eight in ten firms in the AGC survey raised base pay for craft and salaried workers at least as much as they did the year before. If your pay was set two years ago, check it against what competitors are advertising now. For salaried roles, our highest paying executive construction jobs post lists BLS wage data by role.

Use technology where it removes friction

Digital plan management, field reporting, drone surveys and scheduling tools cut paperwork and reduce some safety exposure. They also affect who wants to work for you. We cover the younger-worker angle in 7 ways to attract Gen Z to construction.

Grow your own people

AGC found 36% of firms started or increased training spending, and 48% increased engagement with high school, college or career and technical programs. Paid internships, apprenticeships and mentoring take years to pay off, but they are the only way to fill the next retirement wave from inside. Assign experienced people to mentor new hires and give them time to do it; our post on building a mentorship program shows how.

Bring in a search firm for the roles you can't afford to leave open

Hiring takes weeks of posting, screening, interviewing and negotiating, and the people doing it also have jobs to run. A firm that specializes in construction already knows who is working where and who might move. Our post on what to expect from a search firm walks through the process.

Measure your own hiring

Industry averages tell you the market is tight. Your own numbers tell you where you are losing people. Track these for every open role:

• Days from posting to first interview. If this is more than a week, qualified candidates are taking other calls first.
• Days from final interview to offer. Anything beyond a few days invites a counteroffer or a competing offer.
• Offer acceptance rate. Declines usually point to pay, title or location, and candidates will tell you which if you ask.
• Ninety-day and one-year retention of new hires. Early quits point to a mismatch in the job as sold versus the job as done.
• Source of hire. Referrals, school programs, your own site and recruiters all cost different amounts and produce different quality. Spend where the good hires come from.

Review the list quarterly, and fix the slowest step first.

What this means for executive and senior hires

Senior searches are where the retirement numbers show up first. A superintendent or operations executive who retires takes years of relationships with owners, subcontractors and inspectors along with them. The people ready to replace them are often a decade younger and have not run a job of that size. Start succession planning two to three years ahead: name likely successors, give them one stretch assignment a year, and decide in advance which roles you would go outside for. The qualified candidates in a given market are usually employed, so plan on a process that reaches people who are not applying to postings.

If you have a senior role open and want help filling it, start at /employers or contact us.