AGC survey portrays labor issues in construction sector

The Arlington, Virginia-based Associated General Contractors of America (AGC) has listed immigration enforcement activities as among factors causing construction workforce shortages and resulting project delays.

AGC, in cooperation with the National Center for Construction Education and Research (NCCER), has conducted a survey finding worker shortages as the leading cause of project delays, as new immigration enforcement efforts have impacted nearly one-third of construction firms.

Overall, some 92 percent of construction firms say they are having a difficult time finding workers to hire, with 45 percent of survey respondents saying the circumstance has caused project delays.

“Construction officials called for more funding for construction education and new, lawful ways for people to enter the country to work in the industry,” AGC says of possible solutions.

“As the survey results show, construction workforce shortages aren’t just a problem for the construction industry,” adds Ken Simonson, the association’s chief economist. “Construction projects of all types are being delayed because there aren’t enough qualified workers available for firms to hire.”

AGC says 88 percent of firms responding to the survey report having openings for craft construction workers, while about 80 percent have openings for salaried workers.

In addition to immigration policy, another reason it is difficult to find workers is because federal officials have failed to properly invest in construction workforce training and education, according to AGC.

Simonson says 57 percent of firms report that available candidates are not qualified to work in the industry because they lack essential skills or do not have an appropriate license for the position.

On another policy front, newly imposed and announced tariffs also are having an impact on the construction industry. Simonson says 41 percent of firms report they have raised prices because of tariffs and 39 percent have accelerated purchases in anticipation of new tariffs.

Tariffs have been placed on steel and aluminum and some products made from those two metals and copper, including several types of building products and machinery. Just 14 percent of firms report they have switched from foreign to domestic suppliers because of tariffs, according to the AGC survey.

Concerning immigration, the survey also points to difficulties faced by construction firms to take advantage of the few visa programs available to the industry.

“Only 10 percent of firms use the H-2B visa program or other temporary work visa programs to secure either salaried or hourly craft employees,” the association says.

Regarding stepped-up immigration enforcement, 28 percent of respondents report being affected directly or indirectly by immigration enforcement activities during the past six months.

Specifically, 5 percent report a jobsite or related offsite location was visited by immigration agents and 10 percent say workers left or failed to appear because of actual or rumored immigration actions. Additionally, 20 percent of respondents says subcontractors they use have lost workers.

Contractors in Georgia, Virginia, Alabama, Nebraska and South Carolina were more likely to be affected by such enforcement, with 75 percent of firms in Georgia and 36 percent in South Carolina reporting issues. Conversely, only 8 percent of firms in Idaho and 9 percent in Alaska reported being affected by immigration enforcement activities during the past six months.

Worker shortages are respondents’ most commonly listed reason for project delays, with 78 percent of firms reporting experiencing at least one project that has been delayed during the past 12 months.

Simonson says the construction industry is taking steps to address workforce shortages. Seven out of eight firms have raised base pay for workers as much or more than they did a year earlier, and 42 percent have initiated or increased spending on training and professional development in the past year.

The industry is also looking at technological solutions to help overcome workforce shortages. A majority, 55 percent, of firms have added online strategies like social media and targeted digital advertising to connect better with younger applicants and 52 percent have engaged with career-building programs at high school, college or career and technical education institutions.

“The survey underscores the urgent need to grow our construction workforce and illustrates there is a great need to continue our recruiting efforts and provide accelerated learning opportunities,” says Boyd Worsham, president and CEO of the Florida-based NCCER.

“By expanding access to industry training and career and technical education, we can prepare people for meaningful careers, strengthen contractors’ ability to deliver projects and build the communities we all depend on."

He says NCCER specifically is involved in investing in people in ways that “will give more people the chance to build successful careers while providing contractors the workforce they need.”

Simonson says AGC is urging Congress and the Trump administration to at least double funding levels for high school career and technical education programs and is asking Congress to pass a new Workforce Innovation and Opportunity Act that would allocate at least 50 percent of funds for workforce training programs.

At the same time, Simonson says it will take years to rebuild domestic workforce development programs, and in the meantime Congress and the Trump administration must provide more lawful pathways for people to enter into, or remain in, the country to work in construction.

“This should include establishing a new, construction-specific temporary work visa program,” he says.

AGC indicates it also is pushing the Trump administration to quickly resolve trade disputes with major United States trading partners, including Canada, Mexico and China, to eliminate the threat of punitive tariffs.

“Eliminating market uncertainty will help boost demand for many types of construction projects,” Simonson says.

“Our goal is to make sure the construction industry remains a driver of economic growth in this country. The best way to do that is to ensure it has the workforce, and the demand, needed to continue building the American economy.”

AGC and NCCER conducted its survey in late July and early August. Nearly 1,400 firms completed the survey from what AGC calls a broad cross-section of the construction industry, including union and open shop firms of all sizes. The 2025 Workforce Survey is the association’s 13th annual edition of the survey.