AGC of America and Arcoro survey highlights workforce shortage
A recent survey by AGC of America and HR tech company Arcoro, involving nearly 1,500 diverse construction firms, reveals a significant workforce shortage in the construction industry attributed to insufficient investment in workforce education and training, impacting the nation's ability to execute infrastructure and other projects.
Associated General Contractors (AGC) of America and Arcoro, a human resources (HR) technology company, have conducted a survey that highlights a shortage in the construction industry workforce.
The survey, which gathered responses from nearly 1,500 companies across union and open shop companies of various sizes, was conducted in late July and early August 2024.
The lack of investment in construction workforce education and training is claimed to be having a tangible effect on the nation’s capacity to undertake infrastructure and other construction projects.
Related
Arcoro’s Insights: Looking Back on 2024 - Arcoro
In 2024, Arcoro leveraged its deep expertise in construction HR to provide industry-specific insights and solutions—highlighted in various publications by experts like Carrie Gardenhire and Samantha Stephenson—that addressed workforce challenges such as labor shortages, talent pipeline development through student internships, and increasing female recruitment, ultimately helping construction companies become more strategic, compliant, and better equipped to handle hiring and operational demands amid record job openings.
Demographic Shifts Heighten the Competition for Workers
The construction industry's worker shortage, reported by 94% of firms in 2024, is being intensified by global demographic shifts including declining birth rates since 2007, an aging population, and a shrinking pool of 18-year-olds entering the workforce, with projections indicating over 85 million unfilled jobs by 2030 and a 15% decrease in 18-year-olds by 2039, compounded by a decline in men over 20 participating in the labor force due to retirement and social challenges.
Bridging the Construction Workforce Gap: Actionable Strategies for a Stronger Future - Arcoro
The construction industry, facing critical labor shortages globally, is addressing workforce gaps through innovative recruitment strategies such as pre-apprenticeship programs, construction summer camps for youth, digital outreach targeting Gen Z, and inclusive hiring from non-traditional groups, as detailed in the 2024 National Construction Industry HR & Workforce Conference report.
Spotlight the Power of the Construction Industry
Construction Appreciation Week 2024, held September 16-21, highlights the construction industry's vital role in the U.S. economy—employing over 8 million workers and generating $2.1 trillion annually—while addressing workforce shortages by promoting the benefits of hands-on, well-paid careers with training opportunities to attract the next generation amid shifting attitudes toward trade professions.
Recruiting for the Construction Industry in the New Year: Strategies and Tools for Success - Arcoro
The construction industry faces a critical labor shortage exacerbated by an aging workforce, increased project demand, and negative perceptions deterring younger workers, necessitating strategic recruitment approaches and advanced HR tools to attract skilled labor and sustain industry growth.
Why Make Upskilling a Priority?
With a significant portion of construction workers nearing retirement and fewer young entrants in the field, upskilling through education and training has become essential for construction companies to close the skills gap, improve recruitment, and enhance employee retention, especially as technology facilitates these efforts.