The construction industry in the United States is facing a critical challenge: a severe labor shortage exacerbated by an aging workforce and the loss of institutional knowledge when experienced workers retire.
This workforce dilemma threatens the industry’s ability to meet growing demand, and the stability and sustainability of construction companies as they grapple with finding new, qualified workers to fill the gap.
As of 2022, the median age of workers in construction and extraction occupations was 41.2 years, according to the Bureau of Labor Statistics (BLS). Approximately 45% of all construction workers were 45 years old or older, signaling that a large portion of the workforce is approaching retirement age. While the aging population is a trend seen across many industries—the median age of workers in the U.S. was 42.3 in 2022—construction has been disproportionately affected by this demographic shift.
The Roots of the Problem
The causes of this workforce aging problem are complex and multifaceted. One key factor is the lingering impact of the Great Recession (2007-2009), which led to a massive slowdown in construction activity and drove many skilled workers to leave the industry for more stable and predictable jobs elsewhere. Even as construction rebounded in the following years, the perception of the industry as volatile and lacking job security has persisted, making it difficult to attract younger talent.
Moreover, construction has struggled to compete with other industries that offer more attractive working conditions. Seasonal work, long hours, and physically demanding tasks make the profession less appealing to younger generations, who often prioritize work-life balance and job stability.
“As many members of the senior workforce retire from construction, there aren’t enough qualified, experienced folks to take their place,” Marianne Monte, Chief People and Administration Officer for Shawmut Design and Construction, told industry publication Construction Dive.
The Impact of the Labor Shortage
The shortage of skilled workers is already having tangible effects on the industry. A smaller talent pool has forced some contractors to turn down new projects due to a lack of staffing, resulting in delayed timelines and increased costs. This has been particularly problematic in the face of high demand for construction projects, which include new housing developments, infrastructure upgrades, and commercial expansions.
Kris Manning, Chief Operating Officer of Clark Construction, told Construction Dive that despite high demand, many contractors simply cannot take on additional work without the necessary manpower. This situation can create a vicious cycle where fewer projects lead to fewer opportunities for newcomers to gain experience, further exacerbating the industry’s labor challenges.
Additionally, the retirement of experienced workers has led to a loss of institutional knowledge—skills and insights that are not easily transferable through training or manuals.
Efforts to Attract and Retain Workers
To address these challenges, industry leaders and experts are calling for more proactive recruitment and retention strategies, including:
- Early Outreach and Education: Engaging with students at younger ages is critical to changing perceptions of the construction industry and presenting it as a viable and rewarding career path. This involves introducing skilled trades as early as elementary and middle school and investing in vocational programs at high schools and community colleges.
- Enhanced Diversity and Inclusion Efforts: The construction workforce has historically been dominated by older, white males, which has created a narrow view of who is a fit for the industry. To break this stereotype, companies are placing a greater emphasis on diversity, equity, and inclusion (DEI) initiatives to attract women, minorities, and other underrepresented groups. Once recruited, retaining a diverse workforce requires creating an inclusive environment that acknowledges the unique challenges faced by these groups and offers support such as childcare and flexible working arrangements.
- Technology and Innovation: Leveraging new technologies can also play a pivotal role in attracting younger generations. Digital twins, artificial intelligence (AI), and other innovations can help reduce some of the physical and repetitive aspects of construction work, making the industry more appealing to tech-savvy individuals.
The Cost of Inaction
The implications of not addressing the labor shortage extend beyond individual companies. The construction industry is a critical pillar of the U.S. economy, providing the infrastructure necessary for housing, transportation, and commerce. As more experienced workers retire without adequate replacements, the industry could face a productivity crisis, making it increasingly difficult to meet demand and keep up with new projects.
Without new blood entering the field, companies will have to contend with a continuous cycle of project delays, rising costs, and quality issues, further damaging the industry’s reputation and ability to attract talent.
The Path Forward
Addressing the labor crisis will require a multi-faceted approach that includes:
- Investment in Training and Development: Establishing more apprenticeship programs and on-the-job training opportunities can help bridge the skills gap. Partnerships between construction firms and educational institutions are vital for creating a pipeline of skilled workers.
- Reshaping the Industry’s Image: Public perception of construction as “dirty, dangerous, and dead-end” must change. Marketing campaigns and outreach programs that highlight the technological innovations, career growth opportunities, and benefits of working in construction can help shift attitudes.
- Retention Through Benefits and Work-Life Balance: Implementing policies such as flexible scheduling, additional vacation days, and mental health support can make the industry more appealing. Companies like Skiles Group, which have adopted unlimited vacation policies, are already seeing positive results in reducing burnout and increasing employee satisfaction.
- Harnessing Technology to Transfer Knowledge: Digital tools and platforms that capture the experiential knowledge of retiring workers can help preserve valuable insights and best practices. AI-driven solutions can assist in training new workers and maintaining a high standard of quality even as the workforce transitions.
In the long run, a more diverse, technologically savvy, and well-supported workforce will be better equipped to tackle the challenges ahead. With the right strategies in place, the construction industry can not only overcome its current labor shortage but also emerge stronger, more resilient, and more inclusive.
GPRS is seeking a variety of talents to grow in our industry. Click here for a list of current job openings.
We’re also doing our part to ensure that the institutional knowledge of your workers stays with you and your company when those individuals retire.
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Frequently Asked Questions (FAQ)
1. What types of jobs are available in the construction industry?
The construction industry offers a wide range of job opportunities, from skilled trades like carpentry, plumbing, and electrical work to project management, engineering, and architectural design. There are also opportunities in specialized fields such as demolition, heavy equipment operation, and green building.
2. What skills do I need to work in construction?
Skills required vary by role. For skilled trades, technical skills and knowledge of tools and materials are essential. For management and design roles, problem-solving, project management, and computer skills are critical. Many jobs require physical stamina and a strong understanding of safety procedures.
3. How can I get started in a construction career?
Consider enrolling in a trade school, community college, or apprenticeship program to gain foundational skills. Networking with industry professionals and joining organizations like the Associated General Contractors of America (AGC) can also provide valuable insights and opportunities for career advancement.
