Results of a new workforce survey conducted by the Associated General Contractors of America and the National Center for Construction Education and Research show about one-third of construction companies said immigration enforcement affects labor availability. Additionally, worker demand regarding data centers is contributing to workforce shortages, according to an AGC press release.
Thirty-seven percent of survey respondents say they have reduced their staff by at least 5% during the past 12 months, while 34% increased staff by at least 5%. Seventy-three percent of respondents expect to add employees during the next 12 months. Additionally, 87% of respondents report having openings for hourly craft positions and 82% have openings for salaried positions.
Among companies with craft openings, 88% say those positions are as hard or harder to fill than a year ago, with 50% saying they are more difficult to fill. For salaried positions, 87% of companies with openings say they are as hard or harder to fill than a year ago, with 41% saying they are more difficult to fill.
Fifty percent of respondents say available candidates are not qualified to work in the construction industry because they lack necessary skills, certificates or licenses.
The worker shortage is evident in the data center market, which is experiencing competition for skilled workers. Twenty-eight percent of respondents say they performed construction work on a data center project during the past 12 months, and 37% of those companies say the availability of workers or subcontractors is their biggest challenge regarding such projects.
Twenty-nine percent of survey respondents say they have had at least one direct or indirect effect from immigration enforcement activities during the past six months. Twelve percent say workers left or did not appear because of actual or rumored immigration actions, and 16% say subcontractors lost workers.
Workforce shortages are the most commonly cited reason for project delays, with 42% of respondents saying shortages of their workers or subcontractors’ workers have delayed projects.
To address labor challenges, more than eight in 10 companies say they have increased base pay for hourly craft and salaried workers as much as or more than they did a year earlier, and 36% initiated or increased spending on training and professional development. Additionally, 48% of respondents say they increased engagement with career-building programs at high schools, colleges, or career and technical education institutions.
AGC and NCCER conducted the Workforce Survey in July and August. A total of 1,830 individuals from a broad range of company types and sizes responded to at least one portion of the survey.
