KEY POINTS
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The 2025 AGC and NCCER survey found that 92% of US construction firms struggle to hire qualified workers, and one-third report project delays linked to immigration enforcement.
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Over half of firms cited applicants lacking skills or licenses, as industry leaders urge expanded workforce development, career education funding, and new visa pathways to ease immediate gaps.
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Contractors are raising pay, boosting training, recruiting digitally, and partnering with schools, yet tariffs and immigration pressures add uncertainty.
Nationwide Survey Finds Worsening Labor Crunch
Construction workforce shortages remain a leading cause of project delays in the U.S., with nearly one-third of firms reporting disruptions tied to immigration enforcement, according to a new workforce survey by the Associated General Contractors of America (AGC) and NCCER.
In a statement, the AGC said, "Construction workforce shortages are the leading cause of project delays as new immigration enforcement efforts have impacted near one-third of construction firms."
Help Wanted: Nine in Ten Contractors
The survey measures the severity of construction workforce shortages, their impact on firms and projects, and the steps contractors are taking to cope and attract new workers.
The survey report, released Aug. 28, shows 92% of firms hiring workers are struggling to find qualified candidates. Nearly nine in ten contractors have openings for trade workers, while four in five seek salaried staff.
“Construction projects of all types are being delayed because there aren’t enough qualified workers available for firms to hire,” said Ken Simonson, AGC’s chief economist.
Immigration Enforcement Adds Pressure
Federal immigration actions have further strained the construction labor market. Twenty-eight percent of firms reported impacts in the past six months, of which:
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10% said workers left or failed to appear due to immigration-related concerns
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20% reported subcontractors lost employees
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5% saw direct jobsite visits from immigration agents
Contractors in Georgia (75%), Virginia (56%), Alabama (55%), Nebraska (50%), and South Carolina (36%) were most affected. In contrast, fewer than 10% of firms in Idaho and Alaska reported enforcement-related impacts.
Skills Gap and Training Needs
More than half of survey respondents (57%) said applicants lack the necessary skills or licenses to perform available work. Only 10% of firms reported using H-2B or other temporary visa programs to fill gaps.
Some industry leaders are calling for expanded funding for high school career and technical education programs and for Congress to approve a new Workforce Innovation and Opportunity Act with stronger support for training.
“It will take years to rebuild domestic workforce development programs,” Simonson said, adding that new, construction-specific visa pathways are essential in the short term.
Workforce Development: Pay Raises, Technology, and Outreach
Despite the challenges, firms are taking steps to attract and retain workers, according to survey results:
- 88% increased base pay, many matching or exceeding last year’s raises
- 42% boosted training and professional development spending
- 55% expanded digital recruiting via social media and targeted advertising
- 52% partnered with schools and career-building programs
Tariffs and Market Uncertainty
The survey results also called out tariffs as a headwind for construction. Sixteen percent of firms reported canceled or postponed projects due to tariffs, while 41% raised prices and 39% stockpiled materials.
The AGC is urging the Trump administration to settle trade disputes with Canada, Mexico, and China to reduce uncertainty.
Industry Outlook
The survey data revealed the extent of the industry’s labor shortfall. Forty-five percent of respondents said that project delays were tied directly to worker shortages, while nearly four in five experienced at least one project delay in the past year.
“Our goal is to make sure the construction industry remains a driver of economic growth in this country,” Simonson said. “The best way to do that is to ensure it has the workforce and the demand needed to continue building the American economy.”
Simonson is a longtime presenter at ConstructConnect’s semi-annual webcast, which features economists from ConstructConnect, AIA, and AGC discussing labor, material costs, construction starts, and their collective outlook on the construction industry.
The AGC and NCCER conducted the 13th annual Workforce Survey in late July and early August 2025. They gathered responses from nearly 1,400 union and open shop firms of all sizes across the construction industry. The National Center for Construction Education and Research (NCCER) is a not-for-profit construction education foundation.
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