As has been the case for the past several years, finding skilled workers will likely continue to challenge the construction industry throughout 2025. According to analysis of Associated Builders and Contractors' data by Construction Dive, the construction industry needs to retain approximately 439,000 new workers this year in order to meet current labor demand. While high, the number is smaller than in previous years. For instance, in 2024, it was projected that the construction industry needed to attract 501,000 new workers.
“That’s one of the reasons that the aggregate workforce shortage number is falling, is because the industry has hired a lot of people at the lower skilled part of the spectrum,” [ABC chief economist Anirban] Basu said.
At the same time, Basu said two major factors compound the construction labor shortage. The first, is the cyclical nature of the economy, where demand rises and falls. For now, demand in many sectors, such as single-family, multifamily and office, is relatively reduced, while other sectors are booming. Read more
