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Construction workforce shortages continue, survey indicates

By: Hilary Dorsey//September 6, 2023//

(AGC of America)

Construction workforce shortages continue, survey indicates

Hilary Dorsey//September 6, 2023//

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Not many candidates vying for work in the construction industry have the skills needed to do so, adding to workforce shortages, according to results of a survey by the Associated General Contractors of America (AGC) and Autodesk.

The new data, released Wednesday, is based on surveys completed by more than 1,400 construction firms in the U.S. in July and August. AGC and Autodesk partner each year to measure workforce shortages.

Ken Simonson, AGC鈥檚 chief economist, shared in a meeting Wednesday that 85 percent of survey respondents reported they have open positions they are trying to fill. Among those firms, 88 percent are having trouble filling some positions.

Sixty-eight percent of survey respondents reported that applicants lack the skills needed to work in construction, Simonson said. One-third of respondents reported that candidates cannot pass a drug test.

Supply chain issues and workforce challenges continue to affect respondents, with 65 percent reporting project delays because of supply challenges and 61 percent reporting project delays because of labor shortages. Increased costs caused half the respondents to cancel, postpone or scale back projects.

Many firms are taking steps to cope with shortages. Approximately 81 percent of respondents have raised base pay rates during the past year, 44 percent are providing incentives and bonuses, and 26 percent have improved their benefits packages.

Firms are also increasing investments in internal training programs, with 41 percent of respondents boosting spending on training and development programs, 25 percent enhancing video training capabilities and 14 percent using augmented and virtual reality technology for training.

Most respondents 鈥 91 percent 鈥 agreed that their employees need to have digital technology skills. Nearly three-quarters of responding firms said at least half of the people they are hiring have the technology skills needed.

Allison Scott, director of customer experience and industry advocacy at Autodesk, said digital skills gaps are still widespread issues in the industry, but there are promising trends around artificial intelligence and robotics.

Approximately 41 percent of respondents stated that AI and robotics in the next five years will improve the quality of construction jobs and make workers safer and more productive. Approximately 17 percent of respondents said AI and robotics will negatively impact the construction market by eliminating jobs, while 30 percent expect no impact on construction jobs.

鈥淭he biggest takeaway from this year鈥檚 workforce survey is how much the nation is failing to prepare future workers for high-paying careers in fields like construction,鈥 Simonson said.

Public officials need to boost investments in programs that expose students to the skills needed for careers in construction, because too few schools offer classes in construction, Simonson said. Federal lawmakers need to allow more people with construction skills to lawfully enter the country to work in the sector, he added.

To review survey results, visit .



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