The U.S. construction industry requires 349,000 net new workers in 2026 to balance labor supply and demand amid modest spending growth. Associated Builders and Contractors (ABC) released this projection using a proprietary model that factors in retirements and project pipelines.
Workforce Demand Drivers
ABC Chief Economist Anirban Basu notes that 2026 will require fewer new hires than in recent years due to slower construction spending forecasts, with most demand tied to replacements rather than expansion. Retirements dominate, as one-fifth of electricians are age 55 or older, while data center builds increase the need for precision wiring skills. By 2027, demand rises to 456,000 workers as spending growth resumes.
Key Challenges Ahead
Labor shortages persist in high-demand areas such as industrial megaprojects and semiconductor facilities, exacerbated by aging workers, immigration policies, high material costs, and office vacancies. Nonresidential specialty trade contractors added 95,000 jobs since August 2024, showing pockets of strength, but overall equilibrium hinges on hitting the 349,000 target. Unexpected financing drops or policy shifts could further elevate needs.
Strategies to Fill Gaps
ABC President Michael Bellaman urges market-based worker visas, reskilling for tech innovations, and apprenticeship programs. Federal lawmakers should prioritize these to avoid cost spikes in trades like electricians and pipefitters. Industry efforts in upskilling counter macroeconomic headwinds, ensuring talent for infrastructure rebuilds.
Outlook for Construction Hiring
The construction workforce shortage in 2026 demands proactive hiring in skilled trades. Job seekers targeting electrician jobs 2026 or construction worker opportunities 2026 will find high demand, especially near megaprojects. Contractors must scale apprenticeships now to meet the 349,000 new construction workers by 2026 benchmark.
