AGC, Arcoro Release Construction Workforce Shortage Survey Results

The nation’s failure to invest in construction workforce education and training programs is having a real, measurable impact on the country’s ability to build infrastructure and other construction projects, according to the results of a workforce survey conducted by the Associated General Contractors of America and Arcoro, an HR technology company supporting the construction industry.

AGC noted that 94% of construction firms nationwide report they have open positions they are trying to fill. Among those firms, 94% are having trouble filling at least some of those positions – particularly among the craft workforce that performs the bulk of onsite construction work. Association officials noted that nearly one-in-three contractors reports having at least 11 unfilled craft positions as of June 30.

Workforce shortages are having an impact on contractors’ ability to build projects, according to the survey. Fifty-four percent of contractors reported experiencing project delays because of workforce shortages. Labor shortages are more likely to be the cause of project delays than other causes, like supply chain challenges and shipping delays, the survey found.

Construction officials noted that 62% of respondents reported that available candidates were not qualified to work in the industry because they lack required skills or certificates. Forty-three percent report that employees lack required documentation like a driver’s license, work permit or clean background check. And half of firms report new hires fail to show up or quit shortly after starting.

Contractors are taking steps to overcome labor shortages, according to the survey. Ninety-one percent of firms report they increased base pay rates for hourly construction positions during the past year. In addition, 57% of firms report they have added online strategies to try to recruit younger workers. Fifty-one percent have engaged with career-building programs like high schools or training facilities.

The association and Arcoro conducted the Workforce Survey in late July and early August. Nearly 1,500 firms completed the survey from a broad cross-section of the construction industry, including union and open shop firms of all sizes. The 2024 Workforce Survey is the association’s 12th annual workforce-related survey.

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