North American construction firms are facing a sustained labor shortage that continues to challenge project delivery schedules and budgets. While the sector has seen robust demand, particularly in public infrastructure and industrial development, securing the skilled workforce to meet that demand remains a critical priority.
In the United States, construction recorded 246,000 open positions in June 2025, up from 232,000 in May, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). The level is below the record highs of 2024 but remains historically elevated, reflecting an ongoing imbalance between supply and demand for labor. Associated Builders and Contractors (ABC) projects the industry will need to attract approximately 439,000 net new workers in 2025 to meet anticipated demand. “While the construction workforce has become younger and more plentiful in recent years, the industry still must attract 439,000 new workers in 2025 to balance supply and demand,” ABC Chief Economist Anirban Basu stated in January 2025. In Canada, the demographic picture is even more pressing. BuildForce Canada’s 2025–2034 outlook forecasts that nearly 270,000 experienced construction workers, around one-fifth of the 2024 labor force, will retire over the next decade. When combined with projected growth, total hiring requirements could reach 380,500 by 2034. The report stresses the importance of structured mentorship and the recruitment of under-represented groups to sustain productivity.
Across the continent, public-sector investment is underpinning much of the current demand. The Associated General Contractors of America (AGC) reports that more than two-thirds of U.S. firms plan to add workers in 2025, with the most optimism in water, transportation, and power sectors. These segments are benefiting from multi-year federal programs and utility-led capital expenditure. Despite this steady demand, the labor market remains tight. JOLTS data show that while hiring levels are strong, with 351,000 hires in June 2025, the number of job openings and the rate of separations keep the market competitive for talent.
One of the most significant responses to the shortage has been the expansion of registered apprenticeships. In 2024, the U.S. Department of Labor announced its largest ever combined investment in the system, over 244 million dollars, with the aim of modernizing, diversifying, and expanding apprenticeship opportunities. Additional state-level grants in 2025 are designed to increase employer participation and reduce administrative barriers. For contractors, this provides a clearer pathway to bring in new entrants while ensuring they develop job-ready skills. Earn-while-you-learn models, which combine classroom instruction with on-the-job training, remain one of the most effective tools for both recruitment and retention. They also allow firms to meet immediate project needs while building longer-term capacity. In Canada, BuildForce has identified apprenticeships and mentorship programs as key to bridging the skills gap. With the retirement wave underway, knowledge transfer between experienced tradespeople and newer workers is becoming a strategic imperative.
The firms making the greatest progress in workforce development are those that recruit for specific, well-defined roles rather than broad, generic positions. They are linking their hiring efforts to concrete competencies and career paths, ensuring that new entrants see a clear route to advancement. Many are also working closely with education providers, including community colleges, trade schools, and workforce boards, to design condensed, stackable training modules that shorten the time from initial recruitment to site readiness. This level of partnership aligns training directly with the skills required on active projects and helps ensure consistency in workforce quality.
Equally important is how these firms communicate the value of a construction career. Competitive pay, strong benefits, and the long-term earning potential of skilled trades are being explained with clarity, countering outdated perceptions of the industry. This is particularly effective in reaching high school graduates who are not pursuing four-year degrees and in attracting career switchers who value stability and upward mobility. Retention practices are also becoming more structured. Formal mentoring, practical supports such as tool stipends, and efforts to provide predictable scheduling are helping to reduce attrition, especially during the crucial first year of employment when drop-out rates can be high.
Recent policy developments are helping to reinforce these employer-led efforts. In the United States, apprenticeship funding has become more flexible, allowing states to adapt programs to local industry needs while streamlining the registration process for employers. Public agencies and trade organizations are also releasing more detailed and timely workforce data, enabling better forecasting and planning. In Canada, the acknowledgment of the scale of the upcoming retirement wave is influencing procurement expectations, with more owners looking for evidence of workforce sustainability strategies in contractor bids. These shifts are creating an environment where proactive workforce planning is not only a competitive advantage but, in many cases, a bid requirement.
Contractors preparing for autumn bid cycles and project launches are increasingly adopting integrated workforce strategies. Some are creating targeted onboarding cohorts that tie training milestones to active projects and assign each new recruit to a dedicated mentor. Others are offering multiple entry routes, from pre-apprenticeship programs for those completely new to the sector to direct-entry options for experienced workers from other industries. Outreach efforts are being timed to align with school and college calendars, ensuring a steady flow of candidates at key points in the year. Many firms are now embedding detailed recruitment, training, and retention plans into their bids, giving owners greater confidence in their ability to deliver projects without disruption.
The labor shortage in North American construction is unlikely to be resolved in the short term. However, the growing alignment between public investment, industry-led training, and policy support is providing the foundation for long-term solutions. Firms that treat workforce development as a strategic priority, integrating it into project planning and execution, will be better positioned to meet demand, control labor costs, and maintain schedule integrity.
“The challenge is not a lack of work, but ensuring that the people delivering it have the skills, support, and career prospects to stay in the industry.”
The challenge is not a lack of work, but ensuring that the people delivering it have the skills, support, and career prospects to stay in the industry. Meeting that challenge will require coordinated effort, sustained investment, and the recognition that a strong workforce is as essential to construction as any material or piece of equipment on site.
