According to recent data from the Associated Builders and Contractors (ABC), the U.S. job market is generating worry as demand for workers continues to grow, with an estimated 456,000 new workers needed in 2027, up 30.7 percent from the 349,000 needed this year, which showed a decline over previous years.
New worker demand comes primarily from retirements and attrition, as one-fifth of the construction workforce is over the age of 55. Training takes years and institutional memory and experience is hard to replace. Something will need to be done to avoid a climbing deficit. “Failing to do so will worsen labor shortages, especially in certain occupations and regions, placing further upward pressure on labor costs,” ABC Chief Economist Anirban Basu warned in a statement.
ABC sees overall construction spending returning to growth for the first time in years, and based on its model, every additional $1 billion spent on construction equates to new demand for 3,450 jobs. Meta, Microsoft, Amazon, Google, and Oracle are expected to spend a combined $700 billion this year, up from $400 billion last year, with much of that dedicated to AI, chips, and data centres.
The inability to fill these positions will worsen the labor shortage and lead to project delays, which pushes costs higher. According to the Associated General Contractors of America, last year, 92 percent of construction firms are having difficulty finding qualified workers. Given that AI projects are typically more lucrative for construction firms, it can also lead to greater shortages in other sectors, including residential, factory, and healthcare projects.
