The Labor Shortage
Why Finding Skilled Workers Is Still the Hardest Part of the Job
10/29/20261 min read
Ask almost any contractor what keeps them up at night and you'll hear the same thing: finding good people.
Material prices make headlines, but labor is what quietly sets or breaks schedules. ABC's workforce model estimates the industry needs to attract 349,000 net new workers in 2026 just to keep supply and demand in balance, and 456,000 in 2027 when spending growth is expected to pick up. That's lower than the 439,000 ABC estimated for 2025, but only because spending growth is slow. It doesn't mean hiring has gotten easier. Those numbers will surge in 2027 when the industry will need a projected 456,000 people to keep work moving forward.
Why crews are hard to find
Experienced workers are retiring. ABC says most of 2026's new-worker demand comes from retirements, not new work, even with the data center boom.
Data centers are pulling talent. The AGC found that data center construction is drawing skilled labor and creating shortages in specific trades, even where other work is slow.
There's a skills gap. The AGC's survey also found many applicants lack the skills, certificates, or licenses firms need.
How it effects the costs
In ServiceTitan's 2026 commercial contractor report, 71% of contractors said wages are rising, up from 55% a year earlier. ABC's Basu has warned that unfilled positions put further upward pressure on labor costs.
Protecting your schedule
Ask bidders how they're staffing your project and how long their crews have been together.
Favor contractors who invest in training and keeping their people.
Sequence labor-heavy scopes so they don't collide with a big local project.
Build realistic labor assumptions into the baseline schedule.
The bottom line - the best contractors are busy, and the best crews are even busier. Line them up early.
By the numbers
349,000: net new workers needed in 2026 (ABC); 456,000 projected for 2027
About 3,450: jobs created per $1 billion of added construction spending (ABC model)
71%: commercial contractors reporting rising wages, up from 55% (ServiceTitan, 2026)