The US architecture, engineering, and construction industry is at a crossroads, with a workforce rapidly graying, a crippling talent shortage, and a staggering 89% of firms struggling to find skilled craft workers.
Key Takeaways
- In 2023, the US AEC industry workforce totaled 8.2 million workers, with 28% aged 55 and older
- Average age of construction workers in AEC reached 42.7 years in 2022, up from 38.5 in 2012
- Women represent only 10.9% of the AEC workforce as of 2023, primarily in administrative roles
- 382,000 unfilled skilled trade jobs in US AEC as of Q4 2023
- 89% of AEC firms report difficulty hiring craft workers in 2023 survey
- Time-to-hire for AEC engineers averaged 45 days in 2023, up 20% from 2021
- 55% of AEC training budgets allocated to upskilling existing staff in 2023
- Only 22% of AEC workers certified in OSHA-30, despite 90% requirement on large projects, 2023
- BIM proficiency training completed by 35% of AEC staff, gap of 45% needed
- AEC voluntary turnover rate hit 22.4% in 2023, highest in 5 years
- 65% of AEC workers cite better pay as top reason for leaving in 2023 surveys
- Retention bonus programs retained 78% of key staff in AEC firms, 2023 data
- Women turnover in AEC at 28%, 1.5x men, due to culture 2023 study
- 11.2% of AEC workforce identifies as LGBTQ+ in 2023, but only 5% in leadership
- Black representation in AEC senior roles is 3.2%, vs 7% total workforce, 2023
The AEC industry urgently needs to recruit and retain talent as its workforce rapidly ages and grows.
Demographics and Workforce Size
- In 2023, the US AEC industry workforce totaled 8.2 million workers, with 28% aged 55 and older
- Average age of construction workers in AEC reached 42.7 years in 2022, up from 38.5 in 2012
- Women represent only 10.9% of the AEC workforce as of 2023, primarily in administrative roles
- 15% of AEC workers hold bachelor's degrees or higher, compared to 40% national average, per 2022 data
- Hispanic or Latino workers comprise 30% of the construction segment in AEC, highest ethnic group in 2023
- 22% of AEC engineers are projected to retire by 2030, exacerbating skills gaps
- Entry-level AEC workforce (under 25) dropped to 9% in 2023 from 12% in 2018
- 65% of AEC workers are non-union, varying by region, as of 2022 BLS data
- Veterans make up 12% of the AEC construction workforce in 2023
- Urban AEC firms employ 55% of total workforce, rural 45% skewed toward trades, 2023 stats
- 18% of AEC architects are under 35, lowest in professional services, per 2022 AIA data
- Baby boomers (55+) hold 25% of supervisory roles in AEC engineering, 2023
- Total AEC employment grew 4.2% YoY in 2023, adding 330,000 jobs
- 40% of AEC workforce has vocational training only, no college, 2022 survey
- Immigrants account for 24% of construction laborers in AEC, 2023 CPS data
- Female participation in AEC engineering rose to 15.2% in 2023 from 13% in 2020
- 32% of AEC workforce is part-time or seasonal, highest in construction, 2022
- Gen Z (under 25) represents just 8.5% of total AEC employees in 2023
- 28% growth in AEC project managers over 50 since 2019, per 2023 data
- Black or African American workers are 7% of AEC total, concentrated in trades, 2023
Demographics and Workforce Size Interpretation
The AEC industry is rapidly becoming a graying, heavily male bastion where a retiring generation of experienced supervisors is struggling to pass the torch to a perilously thin pipeline of young, educated, and diverse talent, all while trying to build the future at a breakneck pace.
Diversity, Equity, and Inclusion
- Women turnover in AEC at 28%, 1.5x men, due to culture 2023 study
- 11.2% of AEC workforce identifies as LGBTQ+ in 2023, but only 5% in leadership
- Black representation in AEC senior roles is 3.2%, vs 7% total workforce, 2023
- DEI training reaches 45% of AEC employees, improving inclusion scores 22%
- 25% increase in women-owned AEC firms since 2020, now 14% total, 2023
- Hispanic executives in AEC at 8%, up from 5% in 2019, per 2023 ENR
- 62% of AEC firms have DEI goals, but only 30% track progress metrics, 2023
- Neurodiverse hiring initiatives in AEC cover 2% of roles, boosting innovation 15%
- Pay equity audits show 12% gap for women in AEC engineering, closing 4% YoY
- 18% of AEC internships go to underrepresented minorities, up 10% since 2020
- Supplier diversity spend in AEC reached 15% of total procurement in 2023
- 35% of AEC firms report improved project outcomes with diverse teams, 2023
- Asian American AEC professionals at 6.5%, highest growth group 2023
- ERGs (Employee Resource Groups) active in 40% of large AEC firms, retention +20%
- 7% of AEC board seats held by women in 2023, target 20% by 2030
- Bias training reduced complaints by 28% in participating AEC firms, 2023
- Veteran hiring goals met by 55% of federal AEC contractors, 12% workforce
- Indigenous workers 1.2% in AEC, initiatives aim for 5% by 2028, 2023 data
- Inclusive culture scores 75/100 in top DEI AEC firms vs 52 average, 2023
- 22% growth in multicultural marketing to attract diverse AEC talent, 2023
Diversity, Equity, and Inclusion Interpretation
The AEC industry's DEI journey is a stark portrait of incremental progress—where the clear ambition to build more inclusive companies and cultures is being steadily constructed, yet too often still resting on an unstable foundation of good intentions that desperately need to be reinforced with measurement and accountability.
Recruitment Challenges
- 382,000 unfilled skilled trade jobs in US AEC as of Q4 2023
- 89% of AEC firms report difficulty hiring craft workers in 2023 survey
- Time-to-hire for AEC engineers averaged 45 days in 2023, up 20% from 2021
- 62% of AEC contractors increased starting wages by 5.7% to attract talent in 2023
- Only 25% of AEC job postings receive 50+ applicants, vs 70% in tech, 2023 data
- 77% of AEC firms use staffing agencies for temp hires, up from 60% in 2020
- Entry-level AEC positions saw 40% applicant drop post-COVID in 2023
- 54% of AEC recruiters cite lack of qualified BIM specialists as top challenge, 2023
- Social media sourcing yields 15% of AEC hires, but 35% fail pre-employment tests
- 68% of AEC firms offer signing bonuses averaging $2,500 for trades in 2023
- Campus recruiting fills only 12% of AEC engineering roles, down from 20% in 2019
- 45% of AEC job offers rejected due to relocation reluctance in 2023 survey
- Overtime pay incentives used by 71% of firms, but still 30% vacancy rate for supervisors
- 52% of AEC SMEs report hiring delays impacting project timelines by 2-3 months, 2023
- Trade apprenticeships cover only 8% of needed 500k workers annually in AEC
- 66% of AEC leaders say negative industry perception deters young applicants, 2023
- Virtual interviews adopted by 80% but conversion rate only 18% for remote hires
- 39% increase in AEC headhunter fees, averaging $15k per senior hire in 2023
- 74% of AEC firms prioritize internal referrals, yielding 25% higher retention
Recruitment Challenges Interpretation
The AEC industry is frantically throwing signing bonuses and higher wages at a deepening crisis where nearly 400,000 skilled roles sit empty, because the old playbook of hiring is broken and a skeptical next generation isn't buying what we're selling.
Retention and Turnover Rates
- AEC voluntary turnover rate hit 22.4% in 2023, highest in 5 years
- 65% of AEC workers cite better pay as top reason for leaving in 2023 surveys
- Retention bonus programs retained 78% of key staff in AEC firms, 2023 data
- Burnout caused 35% of AEC mid-level exits, per 2023 Deloitte study
- Flexible scheduling improved retention by 28% in 70% of AEC companies, 2023
- Average AEC tenure is 4.2 years for trades, 6.8 for professionals, 2023 BLS
- 52% turnover cost per employee equals 1.5x salary in AEC, 2023 calc
- Exit interviews show 41% leave for career growth opportunities lacking, 2023
- Unionized AEC sites have 15% lower turnover than non-union, 2023 data
- Mental health support programs cut voluntary quits by 22%, 2023 survey
- 60% of AEC Gen Z employees plan to leave within 2 years without development
- Remote work options retain 33% more architects in AEC, 2023 AIA stats
- High performers turnover 18% higher due to poaching in competitive markets, 2023
- 47% of AEC firms saw turnover spike post-promotions freeze in 2023
- Employee engagement scores below 60% correlate with 25% higher quits, AEC 2023
- Family leave policies retain 80% of parents in AEC professional roles, 2023
- 29% involuntary turnover due to performance in trades, 2023 BLS
- Wellness programs reduce AEC healthcare quits by 19%, costing $50k savings/firm
- 55% of departing AEC staff join competitors within industry, 2023 tracking
Retention and Turnover Rates Interpretation
The AEC industry is hemorrhaging talent not because people hate concrete, but because they've realized they can pour their effort into companies that offer better pay, flexibility, and a future—or they'll just take their skills and go build one for a competitor.
Training and Skills Development
- 55% of AEC training budgets allocated to upskilling existing staff in 2023
- Only 22% of AEC workers certified in OSHA-30, despite 90% requirement on large projects, 2023
- BIM proficiency training completed by 35% of AEC staff, gap of 45% needed
- 48% of firms report ROI >200% on leadership development programs in AEC, 2022-23
- Annual training hours per AEC employee averaged 28 in 2023, vs 40 in manufacturing
- 62% of AEC engineers lack sustainable design certification, per 2023 ASCE survey
- VR/AR training adopted by 18% of AEC firms, reducing errors by 30%, 2023 data
- 75% of AEC apprentices drop out before completion, costing $15k each, 2023
- Soft skills training (communication) requested by 67% of AEC supervisors, 2023
- 41% of AEC budget for digital tools training, focusing on AI and data analytics
- Certification rates for LEED in AEC rose to 12% workforce-wide in 2023
- Micro-credential programs fill 20% of AEC skills gaps faster than degrees, 2023
- 56% of AEC firms partner with community colleges for custom training
- Safety training reduced incidents by 25% where 100% compliance achieved, 2023 OSHA
- 33% of AEC staff untrained in cybersecurity, rising risk in 2023
- Mentorship programs boost AEC productivity 15%, covering 40% of juniors
- 70% of AEC training now online, saving 40% costs vs in-person, 2023
- Prefab training modules adopted by 25%, cutting learning curve 50%
Training and Skills Development Interpretation
The AEC industry’s training landscape reveals a stark paradox: firms are pouring money into digital and leadership programs with impressive returns, yet they are hemorrhaging apprentices and neglecting essential certifications in safety, sustainability, and cybersecurity, leaving a workforce perilously underprepared for the projects of tomorrow.
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