With 94 percent of contractors reporting difficulty filling open positions, construction officials called on federal leaders to adopt better workforce policies.
“The most likely path to addressing construction workforce shortages is for the federal government to adopt better workforce policies,” said Jeff Shoaf, AGC’s Chief Executive Officer, during a virtual media briefing to release the results. “Federal officials need to support, instead of undermine, our national infrastructure and economic development policies.”
Workforce shortages are having an impact on contractors’ ability to build projects, according to the survey. Fifty-four percent of contractors reported experiencing project delays because of workforce shortages. Labor shortages are more likely to be the cause of project delays than other issues like supply chain challenges and shipping delays, the survey found.
In the survey, 62 percent of respondents reported that available candidates were not qualified to work in the industry because they lack required skills or certificates. Forty-three percent said that employees lack required documentation like a driver’s license, work permit, or clean background check. Half of firms reported that new hires fail to show up or quit shortly after starting.
- 91 percent of firms increased base pay rates for hourly construction positions during the past year.
- 57 percent of firms added online strategies to try to recruit younger workers.
- 51 percent engaged with career-building programs like high schools or training facilities.
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Contractors are also increasing investments in their internal training to address candidates’ lack of hard and soft skills. Forty-two percent of firms reported they have initiated or increased spending on training and professional development programs to address workforce shortages, and 26 percent said they increased their use of learning programs with strong online and/or video components.
The survey also showed that construction firms are using human resources technology to address workforce challenges. One in four firms reported using technology to deliver training programs for workers. Meanwhile, 34 percent of respondents noted they have partnered with a third-party firm to establish training courses and professional development.
Shoaf shared the steps AGC has taken to help the industry cope with labor shortages — for instance, partnering with its chapters to run more than a dozen targeted digital advertising campaigns designed to reach and recruit new workers. The association also created recruiting resources for member firms and its chapters, and regularly hosts virtual and in-person gatherings to share workforce development success stories.
In addition, AGC chapters run a host of training and recruitment programs, including:
- Partnering with local school districts to create new construction academies
- Creating pre-apprenticeship and registered apprenticeship programs
- Building and supporting networks of career and technical education teachers
- Hosting dozens of construction career fairs each year
“Considering all that this industry and our association are doing to prepare, recruit, and retain new workers, we are confident that better federal workforce policies will make a meaningful and lasting difference for the better when it comes to the construction workforce,” Shoaf said.
AGC and Arcoro conducted the survey in late July and early August 2024, receiving responses from nearly 1,500 firms representing a cross-section of the construction industry. The 2024 Workforce Survey is the association’s 12th annual workforce-related survey.
For more information — including national, regional, and state fact sheets, as well as survey results by union or open-shop, firm size, and project type — visit agc.org/news/new-survey-shows.
