ICE Crackdown Adds to Construction Workforce Shortages

CONSTRUCTION WORKFORCE SHORTAGES are the leading cause of project delays as new immigration enforcement efforts have impacted near one-third of construction firms.

Those are the key findings of a workforce survey by the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER).

With most construction contractors reporting they are having a hard time filling jobs, construction officials called for more funding for construction education and new, lawful ways for people to enter the country to work in the industry.

“As the survey results show, construction workforce shortages aren’t just a problem for the construction industry,” said Ken Simonson, the association’s chief economist, during a virtual media briefing to release the results. “Construction projects of all types are being delayed because there aren’t enough qualified workers available for firms to hire.”

The survey of 1,300 contractors found that 88% of firms employing craft workers have openings, while four-fifths are also seeking salaried staff.

“We can’t get people,” said NCCER President and CEO Boyd Worsham. “We’re pushing more work onto fewer teams, and it creates fatigue and higher costs.”

Contractors say the challenge isn’t just numbers but quality: 57% report candidates lack essential skills or appropriate certificates or licenses, 48% say hires no-show or quit quickly.

Immigration Policy

Immigration enforcement has become a growing stress point. More than a quarter (28%) of firms report being affected directly or indirectly in the past six months. A fifth (20%) of firms say subcontractors lost workers, 10% lost workers due to raids or rumors and 5% had jobsite or offsite visits from immigration agents.

The impact varies by state: 75% of contractors in Georgia reported being affected, compared to 46% in Alabama and 35% in Nebraska.

The labor shortage is already extending project timelines. Worker shortages caused delays for 45% of firms, while 78% experienced at least one delayed project in the past year.

Roofing contractors may feel the pinch more than most. Census data show that 61% of workers in roofing and insulation are foreign-born, making them especially vulnerable to stepped-up enforcement actions and worker shortages.

Tariffs and Pay

Trade policy is adding another layer of disruption. Tariffs directly causing a project delay or cancellation were cited by 16%, while most (66%) raised prices or accelerated material purchases to avoid higher costs.

Despite spending declines, most contractors still plan to expand their workforce if they can find employees. To cope, firms are raising pay, investing in training, and stepping up recruiting.

The survey shows 95% of firms raised wages last year, with 53% boosting craft worker pay beyond the prior year’s increases. In July 2025, average construction wages have climbed to $39.69 an hour, about 9% higher than the national private-sector average, according to the Bureau of Labor Statistics.

More than half of firms are turning to social media and targeted digital advertising to reach younger workers, while 52% are working with high schools and trade programs to build pipelines. Larger firms are leading the shift — three-quarters of companies with more than $500 million in revenue use these strategies, compared to fewer than half of smaller firms.

Boost Training

Focusing on federal policy AGC Chief Economist Ken Simonson said, “The most important thing policy makers at every level of government must do is boost funding and support for construction education and training programs. Today, four fifths of all federal workforce development dollars go to supporting students who are pursuing a four year college degree. Yet only 38 percent of adults have such a degree.

“At the federal level, Congress and the Trump administration should at least double current funding levels for high school career and technical education programs. And Congress should pass a new Workforce Innovation and Opportunity Act that allocates at least 50% of funds for workforce training programs. Today, only 10% of funds spent through this law go to training programs.”

He also called for a construction-specific temporary work visa program and the fast resolution of trade disputes with Canada, Mexico and China to build certainty for businesses.

>>Read more construction news