GITNUXREPORT 2025

Construction Labor Shortage Statistics

Construction labor shortage threatens projects, costs, safety, and industry growth.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

Women comprise only about 10% of the construction workforce

Statistic 2

The number of women entering construction trades increased by 5% in 2023, but women still make up a small percentage of the workforce

Statistic 3

The construction industry is expected to face a shortage of approximately 650,000 workers by 2024

Statistic 4

80% of contractors report labor shortages as a primary challenge

Statistic 5

70% of construction firms believe the labor shortage will negatively impact project timelines

Statistic 6

The construction industry needs to recruit and train approximately 430,000 new workers annually to meet demand

Statistic 7

The average hourly wage for construction labor has increased by 4.2% over the past year

Statistic 8

Construction unemployment rate was 6.7% in 2023, indicating labor market tightness

Statistic 9

Nearly 85% of contractors have difficulty filling hourly craft positions

Statistic 10

The U.S. construction industry added approximately 250,000 jobs in 2022, but still faces a significant labor gap

Statistic 11

60% of construction companies have changed project deadlines due to labor shortages

Statistic 12

Over 70% of contractors have increased wages to attract workers

Statistic 13

The construction trade industry faces a projected shortfall of 600,000 workers by 2025

Statistic 14

Approximately 45% of construction firms believe that the labor shortage will worsen over the next two years

Statistic 15

52% of contractors report that skilled labor shortages are impacting safety practices on site

Statistic 16

The average time to fill a construction position is now over 60 days, up from 45 days five years ago

Statistic 17

78% of construction firms plan to hire more workers in the next year despite shortages

Statistic 18

Only 16% of construction companies believe they have enough skilled workers

Statistic 19

The turnover rate for construction laborers is approximately 20% annually, higher than many other industries

Statistic 20

65% of construction firms report that COVID-19 has disrupted their workforce plans

Statistic 21

The use of technology such as modular construction and prefabrication is increasing partly to mitigate labor shortages

Statistic 22

The unavailability of skilled labor has contributed to a 12% increase in project costs over the past year, according to industry reports

Statistic 23

55% of contractors cite lack of skilled workers as the top obstacle to project completion

Statistic 24

The construction industry’s productivity has grown by only 1% annually over the past decade, partly due to labor shortages

Statistic 25

Projects are experiencing an average delay of three weeks due to workforce shortages

Statistic 26

68% of contractors report that the labor shortage has led to increased safety risks on sites

Statistic 27

The U.S. construction industry is projected to add over 200,000 new jobs annually through 2030, but labor shortages threaten this growth

Statistic 28

The average duration of construction projects has increased from 12 to 15 months due to labor shortages

Statistic 29

Contractors report that labor shortages have increased project costs by approximately 10-15%

Statistic 30

Only 22% of construction firms are highly confident in their ability to meet future labor demands

Statistic 31

Nearly 60% of construction firms have difficulty finding enough applicants for entry-level positions

Statistic 32

The top three reasons cited by workers leaving construction are low wages, lack of advancement, and safety concerns

Statistic 33

Construction firms that utilize incentives and benefits see a 12% higher retention rate for their workers

Statistic 34

The use of prefabrication and modular construction techniques increased by 35% in 2022, partly to counteract labor shortages

Statistic 35

Construction firms that invest in technology see a 15% increase in efficiency, helping to offset labor shortages

Statistic 36

The integration of robotics in construction is projected to reduce labor needs by up to 20% over the next decade

Statistic 37

The share of construction firms offering training and upskilling programs has increased to 30%, but many report insufficient workforce preparedness

Statistic 38

Many apprenticeship programs are unable to meet the increasing demand for training due to funding cuts

Statistic 39

The industry has seen a 25% decline in vocational training program enrollments in the last five years, impacting future workforce supply

Statistic 40

Investment in workforce training programs increased by 10% in 2022, yet many companies still struggle to find enough qualified workers

Statistic 41

The median age of construction workers is over 42 years, indicating an aging workforce

Statistic 42

The number of construction workers declined by 21% from 2006 to 2016

Statistic 43

Only 28% of millennials are interested in pursuing careers in construction

Statistic 44

The number of apprenticeships in construction decreased by 18% from 2019 to 2022

Statistic 45

The construction workforce participation rate has dropped below 8%, the lowest in decades

Statistic 46

Construction workers are retiring at an average age of 55, accelerating workforce shortages

Statistic 47

The share of youth (18-24) in construction has dropped below 10%, impacting succession planning

Statistic 48

75% of contractors are concerned about future labor availability due to demographic changes

Statistic 49

72% of construction workers would recommend a career in construction to young people, indicating positive perception despite shortages

Statistic 50

The average age of apprenticeship enrollees in construction is rising, indicating a need for youth recruitment

Statistic 51

The Share of skilled workers aged over 50 accounts for nearly 40% of the current construction workforce, indicating impending retirements

Statistic 52

Demographic shifts suggest that by 2030, one-third of the construction workforce will be over 50 years old

Statistic 53

The total number of construction apprenticeships awarded dropped by 22% from 2018 to 2022, impacting future skilled labor pools

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Sources

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Key Highlights

The construction industry is expected to face a shortage of approximately 650,000 workers by 2024
80% of contractors report labor shortages as a primary challenge
The median age of construction workers is over 42 years, indicating an aging workforce
70% of construction firms believe the labor shortage will negatively impact project timelines
The number of construction workers declined by 21% from 2006 to 2016
Only 28% of millennials are interested in pursuing careers in construction
The construction industry needs to recruit and train approximately 430,000 new workers annually to meet demand
Women comprise only about 10% of the construction workforce
The average hourly wage for construction labor has increased by 4.2% over the past year
Construction unemployment rate was 6.7% in 2023, indicating labor market tightness
Nearly 85% of contractors have difficulty filling hourly craft positions
The U.S. construction industry added approximately 250,000 jobs in 2022, but still faces a significant labor gap
60% of construction companies have changed project deadlines due to labor shortages

With the construction industry facing an alarming projected shortfall of nearly 650,000 workers by 2024—exacerbated by an aging workforce, declining youth engagement, and significant recruitment challenges—urgent innovative solutions and increased training investments are essential to keep pace with rising demand and safeguard project timelines.

Diversity, Inclusion, and Gender Representation

Women comprise only about 10% of the construction workforce
The number of women entering construction trades increased by 5% in 2023, but women still make up a small percentage of the workforce

Diversity, Inclusion, and Gender Representation Interpretation

Despite a modest 5% rise in women entering construction trades in 2023, their still-small presence—just about 10% of the workforce—highlights both progress and the persistent need to build a more inclusive industry from the ground up.

Labor Shortages and Recruitment Challenges

The construction industry is expected to face a shortage of approximately 650,000 workers by 2024
80% of contractors report labor shortages as a primary challenge
70% of construction firms believe the labor shortage will negatively impact project timelines
The construction industry needs to recruit and train approximately 430,000 new workers annually to meet demand
The average hourly wage for construction labor has increased by 4.2% over the past year
Construction unemployment rate was 6.7% in 2023, indicating labor market tightness
Nearly 85% of contractors have difficulty filling hourly craft positions
The U.S. construction industry added approximately 250,000 jobs in 2022, but still faces a significant labor gap
60% of construction companies have changed project deadlines due to labor shortages
Over 70% of contractors have increased wages to attract workers
The construction trade industry faces a projected shortfall of 600,000 workers by 2025
Approximately 45% of construction firms believe that the labor shortage will worsen over the next two years
52% of contractors report that skilled labor shortages are impacting safety practices on site
The average time to fill a construction position is now over 60 days, up from 45 days five years ago
78% of construction firms plan to hire more workers in the next year despite shortages
Only 16% of construction companies believe they have enough skilled workers
The turnover rate for construction laborers is approximately 20% annually, higher than many other industries
65% of construction firms report that COVID-19 has disrupted their workforce plans
The use of technology such as modular construction and prefabrication is increasing partly to mitigate labor shortages
The unavailability of skilled labor has contributed to a 12% increase in project costs over the past year, according to industry reports
55% of contractors cite lack of skilled workers as the top obstacle to project completion
The construction industry’s productivity has grown by only 1% annually over the past decade, partly due to labor shortages
Projects are experiencing an average delay of three weeks due to workforce shortages
68% of contractors report that the labor shortage has led to increased safety risks on sites
The U.S. construction industry is projected to add over 200,000 new jobs annually through 2030, but labor shortages threaten this growth
The average duration of construction projects has increased from 12 to 15 months due to labor shortages
Contractors report that labor shortages have increased project costs by approximately 10-15%
Only 22% of construction firms are highly confident in their ability to meet future labor demands
Nearly 60% of construction firms have difficulty finding enough applicants for entry-level positions
The top three reasons cited by workers leaving construction are low wages, lack of advancement, and safety concerns
Construction firms that utilize incentives and benefits see a 12% higher retention rate for their workers
The use of prefabrication and modular construction techniques increased by 35% in 2022, partly to counteract labor shortages

Labor Shortages and Recruitment Challenges Interpretation

With labor shortages projected to reach nearly 650,000 by 2024 and causing project delays, cost overruns, and safety concerns, the construction industry finds itself at a crossroads where investing in worker recruitment, training, and innovative building methods is no longer optional but essential for future growth.

Technological Adoption and Productivity

Construction firms that invest in technology see a 15% increase in efficiency, helping to offset labor shortages
The integration of robotics in construction is projected to reduce labor needs by up to 20% over the next decade

Technological Adoption and Productivity Interpretation

While automation and robotics are stepping up to fill the labor gap with a projected 15% boost in efficiency and a potential 20% reduction in labor needs, they can't quite replace the human touch needed to build the dreams of tomorrow.

Training, Education, and Skill Development

The share of construction firms offering training and upskilling programs has increased to 30%, but many report insufficient workforce preparedness
Many apprenticeship programs are unable to meet the increasing demand for training due to funding cuts
The industry has seen a 25% decline in vocational training program enrollments in the last five years, impacting future workforce supply
Investment in workforce training programs increased by 10% in 2022, yet many companies still struggle to find enough qualified workers

Training, Education, and Skill Development Interpretation

Despite a 10% boost in training investments and 30% of firms offering upskilling programs, the construction industry faces a persistent skills gap exacerbated by declining vocational enrollments and funding cuts, highlighting that financial commitment alone isn't building enough qualified builders.

Workforce Demographics and Aging

The median age of construction workers is over 42 years, indicating an aging workforce
The number of construction workers declined by 21% from 2006 to 2016
Only 28% of millennials are interested in pursuing careers in construction
The number of apprenticeships in construction decreased by 18% from 2019 to 2022
The construction workforce participation rate has dropped below 8%, the lowest in decades
Construction workers are retiring at an average age of 55, accelerating workforce shortages
The share of youth (18-24) in construction has dropped below 10%, impacting succession planning
75% of contractors are concerned about future labor availability due to demographic changes
72% of construction workers would recommend a career in construction to young people, indicating positive perception despite shortages
The average age of apprenticeship enrollees in construction is rising, indicating a need for youth recruitment
The Share of skilled workers aged over 50 accounts for nearly 40% of the current construction workforce, indicating impending retirements
Demographic shifts suggest that by 2030, one-third of the construction workforce will be over 50 years old
The total number of construction apprenticeships awarded dropped by 22% from 2018 to 2022, impacting future skilled labor pools

Workforce Demographics and Aging Interpretation

With the construction workforce aging faster than a settling foundation, shrinking apprenticeship programs, and declining youth interest, the industry faces a blueprint for seismic labor shortages unless it ramps up recruitment and retention efforts— lest our future buildings be held up by a rusting, dwindling crew.