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Construction Workforce Shortages Are Leading Cause Of Project Delays As Immigration Enforcement Affects Nearly 1/3 Of Firms
09/02/2025
[ Article originally appeared in www.agc.org ]
92 Percent of Construction Firms Report Having a Hard Time Finding Workers to Hire, As 45 Percent of Firms Say Labor Shortages are Causing Project Delays, New Nationwide Industry Survey Finds
Construction workforce shortages are the leading cause of project delays as new immigration enforcement efforts have impacted nearly one-third of construction firms, according to the results of a workforce survey conducted by the Associated General Contractors of America and NCCER. Noting that 92 percent of contractors report they are having a hard time filling open positions, construction officials called for more funding for construction education and new, lawful ways for people to enter the country to work in the industry.
“As the survey results show, construction workforce shortages aren’t just a problem for the construction industry,” said Ken Simonson, the association’s chief economist, during a virtual media briefing to release the results. “Construction projects of all types are being delayed because there aren’t enough qualified workers available for firms to hire.”
The association noted that 92 percent of construction firms that are hiring report having a hard time finding qualified workers. As a result, 88 percent of firms report having openings for craft construction workers, while four-fifths of firms have openings for salaried workers.
One reason it is so difficult to find people is because federal officials have failed to properly invest in construction workforce training and education. Simonson noted that the survey responses highlight the impacts of these investment shortfalls. He noted that 57 percent of firms report that available candidates are not qualified to work in the industry because they lack essential skills or do not have an appropriate license for the position.
The survey also demonstrated how difficult it is for construction firms to take advantage of the few visa programs available to the industry. Only 10 percent of firms use the H-2B visa program or other temporary work visa programs to secure either salaried or hourly craft employees.
The industry has also been impacted by stepped-up immigration enforcement. Twenty-eight percent of respondents report being affected directly or indirectly by immigration enforcement activities during the past 6 months. Specifically, 5 percent report a jobsite or offsite was visited by immigration agents. Ten percent say workers left or failed to appear because of actual or rumored immigration actions. And 20 percent report subcontractors lost workers.
The impacts of immigration enforcement varied considerably by state, however. Contractors in Georgia, Virginia, Alabama, Nebraska and South Carolina were more likely to be impacted, ranging from 75 percent of firms in Georgia to 36 percent in South Carolina. Conversely, only 8 percent of firms in Idaho and 9 percent in Alaska reported being impacted by immigration enforcement activities during the past six months.
Worker shortages are respondents’ most-commonly listed reason for project delays. Forty-five percent of respondents report experiencing project delays due to shortages of their own, or subcontractors’ workers. Overall, 78 percent of firms report experiencing at least one project that has been delayed during the past twelve months.
Simonson noted that the construction industry is taking steps to address workforce shortages. Seven out of eight firms raised base pay for workers as much or more than they did a year earlier. And 42 percent initiated or increased spending on training and professional development in the past year.
The industry is also looking to technological solutions to help overcome workforce shortages. A majority, 55 percent, of firms added online strategies like social media and targeted digital advertising to connect better with younger applicants. A similar share, 52 percent, engaged with career-building programs at high school, college, or career and technical education institutions.
Visit AGC website for the full article: https://www.agc.org/news/2025/08/28/construction-workforce-shortages-are-leading-cause-project-delays-immigration-enforcement-affects Back To News |
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