Finding and Keeping Good Construction Workers When Nobody's Applying

The residential construction industry faces a severe worker shortage that isn’t going away anytime soon. According to the Home Builders Institute’s Construction Labor Market Report, the industry needs about 723,000 new construction workers each year to meet housing demand. Meanwhile, the Associated General Contractors’ (AGC) annual workforce survey reports that 94% of firms have unfilled craft worker positions.

The impact is hitting job sites hard: 54% of contractors report project delays due to workforce shortages, and 80% have had projects canceled, scaled back, or postponed for lack of workers. In response, contractors are doing what they can—61% have raised base pay for hourly craft workers, 42% increased training investments, and 25% expanded online training for new hires, the AGC report found.

If you’re a contractor struggling to find and retain qualified workers, you’re facing a structural problem that requires strategic solutions. Here’s how to build a workforce when it seems like nobody’s applying.

Today’s construction labor challenge

The worker shortage has evolved from cyclical to structural, driven by several factors:

• Aging workforce: Over 20% of construction workers are now over 55, with retirements accelerating.
• Limited interest: Only 3% of young adults (18-25) say they would consider a construction career.
• Immigration changes: Historically reliable sources of skilled labor have diminished, with immigration into construction dropping from 88,000 per year in the 2000s to just 45,000 per year in the 2010s.
• Post-pandemic shifts: More workers are seeking opportunities outside traditional on-site construction, with many preferring jobs that offer remote or flexible work arrangements when possible.

These challenges affect virtually all trades. Over 80% of builders experience subcontractor shortages across multiple specialties.

How to build a strong crew

Louis Carter, CEO of Best Practice Institute, works with companies across industries—including construction firms—that have earned recognition as top workplaces for their employee retention and hiring practices. He sees too many contractors making the same mistake: when they do find someone willing to work, they hire without thinking about whether that person will actually stick around.

“Finding people is already hard enough,” Carter explains. “But if you just hire whoever shows up without considering if they’re a good fit, you’ll be back to square one in a few months when they quit.”

Here’s how to make the most of the limited talent pool:

1. Make your company worth working for 

Before posting another “Help Wanted” sign, ask yourself: why would a skilled tradesperson choose you over the contractor down the street? Carter mentions how companies like Cloon Construction, for instance, stand out because they:

• Show genuine respect for skilled trades work
• Tell new hires exactly how they can advance, starting day one
• Pair newcomers with experienced workers who actually want to teach
• Invest real money in training, not just safety videos
• Treat everyone on the job site—from apprentices to project managers—like they matter

Consider, as a first step, running weekly site meetings that aren’t just about deadlines and productivity. Ask workers what they need to do their jobs better and safer.

2. Tap overlooked talent pools

Several underutilized sources of qualified workers exist:

• Veterans: Military experience often includes transferable skills. Carter recommends looking at “MOC to SOC”—military occupation codes to civilian occupation codes—to identify veterans with experience in heavy equipment, HVAC, electrical systems, or other technical skills that translate well to construction.
• Career changers: Mid-career professionals seeking meaningful second careers
• Retirees: Experienced workers looking for part-time arrangements
• People with disabilities and neurodiversity: An often-overlooked source of dedicated talent
• Women: Currently making up only 10-11% of the construction workforce, but organizations like the National Association of Women in Construction and Helmets to Hardhats Office to Advance Women Apprentices are working to change that

Carter also suggests using social media to reach younger workers who might otherwise never consider construction careers.

3. Revamp screening for reliability

To identify candidates who will commit long-term:

• Ask about real situations: “Tell me about a time a project was running behind and how you handled the pressure” or “Describe a safety issue you’ve spotted on a job site”
• Test their attitude: Do they blame others when things go wrong, or do they focus on solutions?
• Safety mindset: Ask specific questions like “What would you do if you saw a coworker not wearing fall protection?”
• Teamwork on job sites: “How do you handle working with subcontractors from different trades on the same project?”
• Learning attitude: Look for people who ask questions about your training programs or advancement opportunities rather than just focusing on pay and schedule

4. Offer competitive compensation and flexible arrangements

Carter is honest about the challenges: “It costs a lot of money. That’s number one.” He acknowledges that flexible scheduling “really does hurt” and makes project management more difficult. But contractors who want to attract workers are making these adjustments anyway:

• Flexible scheduling and four-day work weeks
• Adjusted start times to accommodate parents and caregivers
• Competitive base wages for skilled positions
• Performance bonuses to improve quality
• Overtime pay increases
• Profit-sharing plans

Building effective training pipelines 

With fewer skilled workers available, developing your own talent becomes essential. The most effective approaches include:

5. Invest in training programs

Effective contractors implement:

• Multi-year apprenticeship programs combining on-the-job and classroom instruction
• Hands-on skill development with respected mentors, including trade-specific training like blueprint reading for carpenters and circuit diagnostics for electricians
• Accredited programs through organizations like Associated Builders and Contractors
• Trade-specific licenses and credentials (OSHA 30, NCCER)
• Individual development plans (IDPs) showing clear progression paths
• Regular check-ins to discuss goals and align with career aspirations

6. Establish educational partnerships

Establish relationships with:

• Trade schools and community colleges
• Training programs like BuildStrong Academy, which offers career fairs and STEM programs specifically designed to connect contractors with potential workers
• Local chapters of industry associations
• Programs where contractors can influence curriculum to align with project needs

According to the Joint Center for Housing Studies at Harvard, the construction industry has lost nearly 1 million workers since the mid-2000s and now has roughly one million fewer trade workers than during the 2007 housing boom. Their research shows that successful strategies for rebuilding the workforce include expanding vocational training in high schools, growing pre-apprenticeship and apprenticeship programs that provide hands-on experience in carpentry, plumbing, electrical work, and masonry while participants earn wages as they learn.

7. Prioritize employee growth

Project managers often focus exclusively on productivity without considering worker development. Change this by:

• Creating clear titles and promotion paths (apprentice → crew lead → supervisor)
• Providing timelines for advancement opportunities
• Assigning mentors who can guide progression
• Conducting regular check-ins on career goals
• Offering virtual training and certification options

Taking action today

What can you do immediately to improve your worker situation? Carter recommends connecting with local training programs to access pre-trained talent while focusing on cultural fit and mindset.

“Hire for mindset,” Carter advises. “Getting instant access to that pipeline of skilled workers reduces your hiring time and onboarding costs because you already have skilled talent coming your way.”

The most effective strategy combines access to skilled workers through established training programs while ensuring candidates align with company culture and possess the right mindset for long-term success.

By implementing these approaches, contractors can build stable workforces even in today’s challenging labor market—creating companies where skilled trades professionals want to build careers, not just collect paychecks.