Construction Needs 349,000 New Workers in 2026: What to Do
United Business ConsultantsThe UBC team · 3 min read
Associated Builders and Contractors put a number on the construction labor problem last month. The industry needs to attract an estimated 349,000 net new workers in 2026 to meet demand, and 456,000 in 2027.
The part worth slowing down on is where that demand comes from. It is not a building boom. ABC chief economist Anirban Basu said "a majority of new worker demand in 2026 will be attributable to retirement rather than increased demand for construction services." Contractors need hundreds of thousands of people just to stay where they are.
What the ABC forecast says
The industry needs 349,000 net new workers in 2026 and 456,000 in 2027, when spending growth is expected to pick back up.
ABC's model assumes about 3,450 jobs for every $1 billion in added construction spending.
Roughly one-fifth of all electricians are over 55.
Nonresidential specialty trade contractors have added 95,000 jobs since August 2024, according to ABC's analysis of federal data.
Basu's warning for contractors was direct: "contractors will continue to struggle to fill open positions, especially in certain occupations and regions." He pointed to electricians who can handle precision wiring for data centers and to regions with industrial megaprojects such as semiconductor plants.
The January jobs report points the same way
The January jobs report, released February 11, showed employers adding 130,000 jobs with unemployment at 4.3%. Construction added 33,000 of those jobs, and 25,000 came from nonresidential specialty trade contractors.
That same report revised the national payroll count for March 2025 down by 898,000. So the broad job market is softer than it looked, while the trades are still hiring. A weak national headline does not mean experienced superintendents and licensed electricians are suddenly available.
What this means if you run a construction company
Your competition for people is other contractors. The project managers, superintendents, estimators and electricians you want are already working. Some will move for the right project, pay and leadership. Very few of them are answering job ads.
Retirements take knowledge with them. When a 30-year superintendent leaves, you lose more than a headcount. You lose schedule discipline, subcontractor relationships and the judgment that keeps a job out of trouble.
Waiting for the award is too late. If hiring starts the day a project is won, the search runs into the schedule from day one.
Five moves to make this quarter
Map your retirements. List every field leader and licensed tradesperson within five years of retiring, and write down what would stop if each one left tomorrow.
Plan hiring against your backlog and your bids. Build a role-by-role list for the work you have and the work you are pursuing, with the date each person needs to be on site.
Recruit people who are employed. Direct, personal outreach to working superintendents and project managers reaches candidates a job posting never will.
Shorten your process. Strong candidates have options. Decide in advance who interviews, who approves the offer and how fast you can move.
Fix the reasons people leave. Look at pay against the current market, per diem, schedule predictability and whether there is a visible path from the field into leadership.
Where UBC fits
UBC recruits project managers, superintendents, estimators and skilled trades for construction companies nationwide. Partner Joe Meyer spent a decade in construction and development before moving into recruiting, so the first call starts with your backlog.
Contractors use us in three ways: Recruiting-as-a-Service for ongoing or project-based hiring, Retained Search for critical leadership roles, and contract or contract-to-hire options when the workload is uncertain.
For more on the people side of running jobs, see our earlier post on why construction firms are turning to fractional HR.
If your backlog depends on roles you have not filled yet, tell us what you need or call 404-480-0297.
