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The U.S. construction industry is facing a severe labor shortage: to keep projects moving, the sector needs 349,000 additional workers in 2026, and the figure rises to 456,000 in 2027. That is the estimate from Associated Builders and Contractors (ABC), one of the industry’s leading trade groups.

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The United States Needs 349,000 Construction Workers in 2026 and Another 456,000 in 2027

According to ABC’s analysis, published in early 2026, U.S. construction needs to attract about 349,000 net new workers this year to balance labor supply and demand, and another 456,000 next year.

The estimate comes from the association’s own model, which cross-references construction spending (using Census data) with industry employment (using Labor Department data) and calculates that every additional $1 billion in construction spending translates into about 3,450 jobs.

Why Workers Are in Short Supply

The shortage does not stem from a single cause, but from a combination of factors:

  • Retirements: according to ABC, most of the demand for new workers in 2026 is driven by veteran employees leaving the industry, rather than by growth in construction activity.
  • An aging workforce: the industry’s workforce is getting older; among electricians, roughly one in five is over 55.
  • The data center boom: the rapid construction of data centers, driven by artificial intelligence, has sharply increased demand for certain skilled trades, especially electricians able to do precision wiring.
  • Immigration: ABC calls it a “wild card.” Fewer border crossings and more workers leaving the field could reduce the labor supply, though the extent is still unclear.

The association also points to other factors, including high material costs, tariffs and the sector’s rapid technological change.

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Who Is Most in Demand

Within construction, not all trades are in equal demand. Electricians stand out as one of the most sought-after roles, for two reasons: the aging of that workforce (with a significant share nearing retirement) and the explosion in data centers, which require specialized, precision electrical work.