Contractors across the U.S. are increasing pay, expanding training, and partnering with schools to bring in new talent. But even with all those efforts, the workforce gap in commercial construction isn’t closing.
According to the 2025 Workforce Survey from AGC and NCCER, 92% of construction firms are still struggling to find qualified workers. Those shortages come with real consequences, with 45% of firms reporting that a lack of labor has directly delayed their projects.
Pay Is Up. The Shortage Is Still Here.
In the past year, 88% of construction firms raised base pay rates. For many, those increases matched or even exceeded the raises they gave the year before. This was supposed to ease the labor shortage. Instead, more than half of contractors say it hasn’t made a dent in the skills gap. Applicants continue to show up without the training or qualifications the job demands.
Laborers, electricians, pipefitters, and equipment operators remain hard to find. Among firms with openings for hourly craft roles, more than 70% said they’re struggling to fill key positions.
The problem isn’t just technical skills. Employers cited challenges ranging from failed drug tests and missing credentials to lack of transportation and new hires not showing up for work.
The pressure is widespread:
- 88% of firms have craft openings
- 83% have salaried job openings
- More than 80% said it’s at least as hard or harder to fill those jobs compared to last year
According to Boyd Worsham, president and CEO of NCCER, investing in people is the key to preparing more workers for meaningful careers and making sure contractors have the teams they need.
Contractors Are Trying New Tactics, But It's Not Enough
While higher wages get the headlines, contractors are investing in more than just pay:
- 42% increased spending on training and professional development
- 55% expanded their digital recruiting strategy with social media and targeted ads
- 52% partnered with high schools, colleges, and career-building programs
Some firms are also implementing new training tech, from online programs to augmented and virtual reality tools. Others are strengthening performance management systems and laying out career paths to improve retention.
Even with these efforts, many firms are still stuck with unfilled roles. On June 30, nearly half of respondents reported having between 2 and 10 unfilled craft positions, and many had even more.
Building Ahead
Looking ahead, most contractors still expect to grow, with more than 60% saying they plan to add employees in the coming year. But reaching that goal will take more than competitive pay. It will require long-term investment in training, stronger recruiting strategies, and a clear plan to develop the talent the industry needs.
As Ken Simonson of the AGC put it, “Our goal is to make sure the construction industry remains a driver of economic growth in this country. The best way to do that is to ensure it has the workforce and the demand needed to continue building the American economy.”
