Amidst a booming industry that added 92,000 jobs in a single quarter, a stark reality persists: construction firms are turning down work and facing project delays because they simply cannot find enough people to build.
Key Takeaways
- The construction industry faces a shortage of 501,000 workers in 2023.
- U.S. construction employment reached 7.9 million in 2023.
- 89% of construction firms report difficulty filling craft worker positions.
- 45% of construction workforce is over 45 years old.
- Women make up only 10.9% of the construction workforce.
- Hispanic or Latino workers comprise 30% of construction employees.
- Recruitment costs average $4,200 per hire in construction.
- Time-to-hire for construction roles is 42 days.
- 70% of firms use social media for construction recruitment.
- Construction wages average $32.50 per hour.
- Health insurance offered to 85% of full-time workers.
- Average benefits package value is $15,000 annually.
- Safety training hours average 40 per year.
- 75% of firms provide OSHA 10-hour training.
- Apprenticeship completion rate is 65%.
Severe labor shortages plague the construction industry despite strong job growth.
Demographics and Diversity
- 45% of construction workforce is over 45 years old.
- Women make up only 10.9% of the construction workforce.
- Hispanic or Latino workers comprise 30% of construction employees.
- Average age of construction worker is 42.8 years.
- 73% of construction workers are non-union.
- Veterans represent 15% of the construction workforce.
- Black or African American workers are 7.2% of construction labor.
- 25% of new construction hires are under 25 years old.
- Immigrants account for 25% of construction workforce.
- Gen Z expected to fill 30% of new construction jobs by 2030.
- 11.2% of construction managers are women.
- Union membership in construction declined to 12.4% in 2023.
- 55% of workforce has high school diploma or less.
- Asian workers are 2.5% of construction employees.
- 40% of construction apprentices are people of color.
- Female participation in construction apprenticeships at 10.5%.
- Median age in skilled trades is 43 years.
- 20% growth in female construction enrollment in colleges.
- Construction workforce diversity index improved 5% since 2020.
- 15% of superintendents are under 40.
- Average construction worker tenure is 4.5 years.
Demographics and Diversity Interpretation
The construction industry's future is being built on a paradox of demographic extremes: it is simultaneously greying out, with nearly half the workforce over 45, while also slowly diversifying and recruiting from younger, more varied groups, though its stubbornly low female and union participation rates show just how much heavy lifting remains to be done.
Labor Shortages and Employment Levels
- The construction industry faces a shortage of 501,000 workers in 2023.
- U.S. construction employment reached 7.9 million in 2023.
- 89% of construction firms report difficulty filling craft worker positions.
- Construction job openings were at 383,000 in December 2023.
- The industry needs 879,000 additional workers by 2024.
- 92% of contractors struggle to hire salaried professionals.
- Construction unemployment rate was 4.5% in 2023.
- Over 400,000 craft positions unfilled annually since 2020.
- 6 out of 10 construction firms turned down work due to labor shortages.
- Projected need for 1.5 million additional construction workers by 2026.
- Construction added 92,000 jobs in Q1 2024.
- 77% of firms say skilled labor shortage is top challenge.
- Entry-level craft worker shortage at 110,000 in 2023.
- Construction labor demand up 12% from 2022.
- 3.8 million construction workers needed by 2027.
- 65% of contractors report project delays due to labor issues.
- Hourly craft workforce gap of 546,000 by 2026.
- Construction employment growth slowed to 1.2% in 2023.
- 82% of firms increased wages to attract workers.
- Net employment outlook for construction at +35%.
Labor Shortages and Employment Levels Interpretation
The construction industry is caught in a vicious cycle where nearly everyone is hiring, yet so many projects are stalling, because we're trying to build the future with a workforce we don't yet have.
Recruitment and Hiring
- Recruitment costs average $4,200 per hire in construction.
- Time-to-hire for construction roles is 42 days.
- 70% of firms use social media for construction recruitment.
- Entry-level carpenter hiring up 15% in 2023.
- 55% of hires come from referrals in construction.
- Online job applications increased 25% post-COVID.
- 62% of contractors partner with trade schools for hiring.
- Cost per hire for skilled trades is $5,500.
- 48% use staffing agencies for temp hires.
- Hiring for project managers takes 60 days on average.
- 75% of firms offer signing bonuses.
- Digital recruiting tools adopted by 80% of large firms.
- 35% increase in apprenticeship program enrollments.
- 90% of hires lack formal certification initially.
- Virtual interviews used by 65% for remote hiring.
- Turnover impacts hiring costs by 20%.
- 40% of job postings receive fewer than 10 applicants.
- Women recruitment targeted programs reach 15% more females.
- Average salary offer for electricians up 8%.
- 52% of firms use AI in screening resumes.
Recruitment and Hiring Interpretation
The construction industry is throwing everything from signing bonuses and AI screeners to trade school partnerships and social media at its hiring crisis, but with glacial hiring times, sky-high costs, and a heavy reliance on the old-school grapevine, it’s clear that building a workforce is now a more complex project than the buildings themselves.
Training and Safety
- Safety training hours average 40 per year.
- 75% of firms provide OSHA 10-hour training.
- Apprenticeship completion rate is 65%.
- Fall protection training mandatory for 90%.
- 2.8 million workers trained in safety in 2023.
- Upskilling programs cover 50% of workforce.
- Incident rate dropped 5% after training initiatives.
- 80% use VR for hazard recognition training.
- Leadership training for 30% of supervisors.
- Annual safety audit training for all employees.
- Craft training ROI averages 200%.
- 40 hours of initial orientation for new hires.
- Diversity training implemented by 60%.
- Equipment operation certification for 85%.
- E-learning modules used by 70% of firms.
- Near-miss reporting training reduces incidents 15%.
- 25% of budget allocated to training.
- Bilingual safety training for 40% of sites.
- Fatigue management training for night shifts.
- 95% compliance with mandatory safety courses.
- Tech skills training for BIM up 30%.
Training and Safety Interpretation
While the industry builds a commendable scaffold of compliance—with 95% course completion and 90% fall protection—it's clear the true foundation of safety isn't just in mandating hours, but in strategically layering leadership development, upskilling, and immersive tools like VR to transform a 65% apprenticeship completion rate into a 100% culture of vigilance.
Turnover and Retention
- Voluntary turnover rate in construction is 22%.
- Retention bonus offered to 50% of key staff.
- Employee engagement scores average 65%.
- 30% of turnover due to better opportunities elsewhere.
- Mentorship programs reduce turnover by 20%.
- Average tenure for craft workers is 3.2 years.
- Exit interviews show pay as top retention issue.
- Flexible scheduling retains 25% more millennials.
- 45% turnover rate for first-year hires.
- Career pathing programs boost retention 15%.
- Burnout cited in 35% of voluntary quits.
- Recognition programs lower turnover 10%.
- Remote work options for office staff retain 40% better.
- Turnover costs average $15,000 per employee.
- 60% of firms track retention metrics quarterly.
- Succession planning covers 70% of leadership roles.
- Feedback surveys improve retention by 12%.
- 18% involuntary turnover rate.
- Wellness programs cut turnover 8%.
- Promotion from within retains 55% longer tenure.
- High performers turnover 25% higher without development.
Turnover and Retention Interpretation
With a retention strategy as patchy as a half-finished roof—offering cash bonuses to stop the bleeding while ignoring the glaring leaks of burnout, poor pay, and a lack of career paths—the industry is hemorrhaging talent and paying dearly for each departure.
Wages and Benefits
- Construction wages average $32.50 per hour.
- Health insurance offered to 85% of full-time workers.
- Average benefits package value is $15,000 annually.
- Overtime pay averages 10% of total compensation.
- 401(k) participation at 65% in construction.
- Paid time off averages 12 days per year.
- Wage growth in construction was 5.1% in 2023.
- Perks like tool allowances offered to 70%.
- Average bonus for project managers is $10,000.
- Health coverage costs rose 7% for employers.
- Median weekly earnings $1,200 for construction laborers.
- 55% offer mental health benefits.
- Tuition reimbursement provided to 40% of skilled workers.
- Shift differentials average $2 per hour.
- Total compensation up 4.2% year-over-year.
- 75% of firms provide safety gear allowances.
- Pension plans cover 25% of workforce.
- Family leave offered by 60% of large contractors.
- Performance incentives boost pay by 5-10%.
- Average CEO pay in construction $450,000.
- 30% wage premium for union workers.
Wages and Benefits Interpretation
Even with decent wages and some solid perks, the construction industry’s benefits are a bit like a fixer-upper: the bones are good, but the gaps in coverage and the sheer cost of maintaining it show there's still some remodeling to do.
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