Model Finds Construction Industry Needs 349,000 New Workers in 2026 to Meet Demand

According to a proprietary model recently developed and released by Associated Builders and Contractors (ABC), the construction industry needs to attract an estimated 349,000 net new workers in 2026 to meet demand for construction services. In 2027, the industry will need to hire 456,000 new workers to meet demand as construction spending growth is estimated to resume for the first time in years.

“If current consensus forecasts hold true, the construction industry will need to bring in 349,000 new workers in 2026 just to keep the supply and demand for labor in equilibrium,” says ABC chief economist Anirban Basu. “Failing to do so will worsen labor shortages, especially in certain occupations and regions, placing further upward pressure on labor costs.”

ABC’s proprietary model uses the historical relationship between inflation-adjusted construction spending growth sourced from the U.S. Census Bureau’s Construction Put in Place survey and payroll construction employment from the U.S. Bureau of Labor Statistics. The model also includes the current level of job openings, industry employment and projected industry retirements into its computations.

“ABC’s 2026 workforce shortage analysis shows a series of macrodynamics at play in the industry,” says Michael Bellaman, ABC president and CEO. “These include an aging and retiring workforce, immigration enforcement, high materials prices, tariffs, office vacancies and rapidly evolving technologies and innovation. Despite these variables, the analysis shows the construction industry still faces an urgent need for talent to build and rebuild America’s infrastructure.”