Report: Construction Needs 349K New Workers in 2026
The construction industry will need to add 349,000 new workers in 2026, according to a research model from the Associated Builders and Contractors (ABC).
ABC Chief Economist Anirban Basu says the shortage for the coming year is mainly attributable to retirements of industry veterans, as well as rapid growth in demand in certain regions and specialized occupations fueled by megaprojects like AI data centers and semiconductor fabrication facilities.
The forecasted demand for net growth this year is lower compared to previous ABC annual projections. The ABC model predicted needs of 439,000 workers at the beginning of 2025, 501,000 workers in 2024 and 546,000 in 2023.
“The industry needs to attract fewer workers than in recent years, a decline that can be traced to extremely modest spending growth forecasts for 2026 and 2027,” said Basu.
Macroeconomic variables such as high material costs and various government policies factor into industry spending projections.
While the trends seem to show a slight easing of demand, the ABC model predicts spending growth to increase again in 2027, resulting in a projected need of 456,000 new workers. ABC president and CEO Michael Bellaman cautions that it’s not yet time for contractors to relax.
“The construction industry does not have to fall off the workforce shortage cliff,” said Bellaman. “To avoid this outcome and shore up the talent pipeline, now is the time for action—not complacency—to reaffirm that the construction industry offers careers of choice in today’s complex job market.”
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