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
145% of construction workforce is over 45 years old.
Verified2Women make up only 10.9% of the construction workforce.
Verified3Hispanic or Latino workers comprise 30% of construction employees.
Verified4Average age of construction worker is 42.8 years.
Directional573% of construction workers are non-union.
Single source6Veterans represent 15% of the construction workforce.
Verified7Black or African American workers are 7.2% of construction labor.
Verified825% of new construction hires are under 25 years old.
Verified9Immigrants account for 25% of construction workforce.
Directional10Gen Z expected to fill 30% of new construction jobs by 2030.
Single source1111.2% of construction managers are women.
Verified12Union membership in construction declined to 12.4% in 2023.
Verified1355% of workforce has high school diploma or less.
Verified14Asian workers are 2.5% of construction employees.
Directional1540% of construction apprentices are people of color.
Single source16Female participation in construction apprenticeships at 10.5%.
Verified17Median age in skilled trades is 43 years.
Verified1820% growth in female construction enrollment in colleges.
Verified19Construction workforce diversity index improved 5% since 2020.
Directional2015% of superintendents are under 40.
Single source21Average construction worker tenure is 4.5 years.
VerifiedDemographics 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
1The construction industry faces a shortage of 501,000 workers in 2023.
Verified2U.S. construction employment reached 7.9 million in 2023.
Verified389% of construction firms report difficulty filling craft worker positions.
Verified4Construction job openings were at 383,000 in December 2023.
Directional5The industry needs 879,000 additional workers by 2024.
Single source692% of contractors struggle to hire salaried professionals.
Verified7Construction unemployment rate was 4.5% in 2023.
Verified8Over 400,000 craft positions unfilled annually since 2020.
Verified96 out of 10 construction firms turned down work due to labor shortages.
Directional10Projected need for 1.5 million additional construction workers by 2026.
Single source11Construction added 92,000 jobs in Q1 2024.
Verified1277% of firms say skilled labor shortage is top challenge.
Verified13Entry-level craft worker shortage at 110,000 in 2023.
Verified14Construction labor demand up 12% from 2022.
Directional153.8 million construction workers needed by 2027.
Single source1665% of contractors report project delays due to labor issues.
Verified17Hourly craft workforce gap of 546,000 by 2026.
Verified18Construction employment growth slowed to 1.2% in 2023.
Verified1982% of firms increased wages to attract workers.
Directional20Net employment outlook for construction at +35%.
Single sourceLabor 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
1Recruitment costs average $4,200 per hire in construction.
Verified2Time-to-hire for construction roles is 42 days.
Verified370% of firms use social media for construction recruitment.
Verified4Entry-level carpenter hiring up 15% in 2023.
Directional555% of hires come from referrals in construction.
Single source6Online job applications increased 25% post-COVID.
Verified762% of contractors partner with trade schools for hiring.
Verified8Cost per hire for skilled trades is $5,500.
Verified948% use staffing agencies for temp hires.
Directional10Hiring for project managers takes 60 days on average.
Single source1175% of firms offer signing bonuses.
Verified12Digital recruiting tools adopted by 80% of large firms.
Verified1335% increase in apprenticeship program enrollments.
Verified1490% of hires lack formal certification initially.
Directional15Virtual interviews used by 65% for remote hiring.
Single source16Turnover impacts hiring costs by 20%.
Verified1740% of job postings receive fewer than 10 applicants.
Verified18Women recruitment targeted programs reach 15% more females.
Verified19Average salary offer for electricians up 8%.
Directional2052% of firms use AI in screening resumes.
Single sourceRecruitment 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
1Safety training hours average 40 per year.
Verified275% of firms provide OSHA 10-hour training.
Verified3Apprenticeship completion rate is 65%.
Verified4Fall protection training mandatory for 90%.
Directional52.8 million workers trained in safety in 2023.
Single source6Upskilling programs cover 50% of workforce.
Verified7Incident rate dropped 5% after training initiatives.
Verified880% use VR for hazard recognition training.
Verified9Leadership training for 30% of supervisors.
Directional10Annual safety audit training for all employees.
Single source11Craft training ROI averages 200%.
Verified1240 hours of initial orientation for new hires.
Verified13Diversity training implemented by 60%.
Verified14Equipment operation certification for 85%.
Directional15E-learning modules used by 70% of firms.
Single source16Near-miss reporting training reduces incidents 15%.
Verified1725% of budget allocated to training.
Verified18Bilingual safety training for 40% of sites.
Verified19Fatigue management training for night shifts.
Directional2095% compliance with mandatory safety courses.
Single source21Tech skills training for BIM up 30%.
VerifiedTraining 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
1Voluntary turnover rate in construction is 22%.
Verified2Retention bonus offered to 50% of key staff.
Verified3Employee engagement scores average 65%.
Verified430% of turnover due to better opportunities elsewhere.
Directional5Mentorship programs reduce turnover by 20%.
Single source6Average tenure for craft workers is 3.2 years.
Verified7Exit interviews show pay as top retention issue.
Verified8Flexible scheduling retains 25% more millennials.
Verified945% turnover rate for first-year hires.
Directional10Career pathing programs boost retention 15%.
Single source11Burnout cited in 35% of voluntary quits.
Verified12Recognition programs lower turnover 10%.
Verified13Remote work options for office staff retain 40% better.
Verified14Turnover costs average $15,000 per employee.
Directional1560% of firms track retention metrics quarterly.
Single source16Succession planning covers 70% of leadership roles.
Verified17Feedback surveys improve retention by 12%.
Verified1818% involuntary turnover rate.
Verified19Wellness programs cut turnover 8%.
Directional20Promotion from within retains 55% longer tenure.
Single source21High performers turnover 25% higher without development.
VerifiedTurnover 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
1Construction wages average $32.50 per hour.
Verified2Health insurance offered to 85% of full-time workers.
Verified3Average benefits package value is $15,000 annually.
Verified4Overtime pay averages 10% of total compensation.
Directional5401(k) participation at 65% in construction.
Single source6Paid time off averages 12 days per year.
Verified7Wage growth in construction was 5.1% in 2023.
Verified8Perks like tool allowances offered to 70%.
Verified9Average bonus for project managers is $10,000.
Directional10Health coverage costs rose 7% for employers.
Single source11Median weekly earnings $1,200 for construction laborers.
Verified1255% offer mental health benefits.
Verified13Tuition reimbursement provided to 40% of skilled workers.
Verified14Shift differentials average $2 per hour.
Directional15Total compensation up 4.2% year-over-year.
Single source1675% of firms provide safety gear allowances.
Verified17Pension plans cover 25% of workforce.
Verified18Family leave offered by 60% of large contractors.
Verified19Performance incentives boost pay by 5-10%.
Directional20Average CEO pay in construction $450,000.
Single source2130% wage premium for union workers.
VerifiedWages 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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