U.S. Construction Industry Faces Soaring Labor Demand, Needs 456,000 New Workers in 2027

AI giants' infrastructure spending boom adds to construction labor shortage woes

Feb. 7, 2026 at 3:47pm

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The U.S. construction industry is projected to need 456,000 new workers in 2027, a 30.7% increase from the 349,000 needed this year, according to a report by the Associated Builders and Contractors trade group. This surge in labor demand is driven by a combination of factors, including increased construction spending, retirements, and the AI infrastructure boom led by tech giants like Meta, Microsoft, Amazon, Google, and Oracle.

Why it matters

The construction industry's labor shortage could worsen, leading to project delays and higher labor costs, if the industry fails to attract and train enough new workers. This challenge is exacerbated by the Trump administration's immigration crackdown, which has cut off a traditional source of construction workers. The skilled trades, such as electricians and HVAC technicians, are expected to see even faster growth, adding to the urgency of addressing the labor shortage.

The details

The construction industry's labor demand is driven by a combination of factors, including increased construction spending, retirements, and the AI infrastructure boom. While overall construction spending is poised to return to growth, the majority of new worker demand this year is due to retirements rather than increased need for construction services. However, the AI infrastructure boom led by tech giants is adding to the industry's labor needs, as data center projects are often more lucrative for construction firms, exacerbating shortages for other projects like apartments, factories, and healthcare facilities.

  • The Associated Builders and Contractors trade group estimated the industry will need to bring in 456,000 new workers in 2027, up 30.7% from the 349,000 needed this year.
  • In the first 10 months of 2025, outlays for new data center construction jumped 32% from the same period a year earlier.
  • Since August 2024, nonresidential specialty trade contractors have added 95,000 jobs.

The players

Associated Builders and Contractors

A trade group that represents the construction industry and has reported on the industry's labor shortage and forecasted the need for 456,000 new workers in 2027.

Anirban Basu

The chief economist of the Associated Builders and Contractors, who warned that failing to address the labor shortage will worsen labor shortages and place further upward pressure on labor costs.

Meta, Microsoft, Amazon, Google, and Oracle

AI giants that are expected to spend a combined $700 billion on infrastructure, including chips and data centers, in 2026, further driving construction demand.

Donald Trump

The former U.S. president whose immigration crackdown has largely cut off the flow of a traditional pool of workers for the construction sector.

Jim Farley

The CEO of Ford, who has warned about the massive shortfall in workers for the 'essential economy,' including a deficit of 600,000 workers in factories and nearly half a million in construction.

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What they’re saying

“Failing to do so will worsen labor shortages, especially in certain occupations and regions, placing further upward pressure on labor costs.”

— Anirban Basu, Chief Economist, Associated Builders and Contractors

“I think the intent is there, but there's nothing to backfill the ambition. How can we reshore all this stuff if we don't have people to work there?”

— Jim Farley, CEO, Ford (Axios)

What’s next

The construction industry will need to focus on recruiting and training new workers, especially in the skilled trades, to address the labor shortage and meet the growing demand for construction services, including the AI infrastructure boom.

The takeaway

The U.S. construction industry's labor shortage is a pressing challenge that requires immediate action to attract, train, and retain a new generation of skilled workers. Failure to do so could lead to project delays, higher labor costs, and missed opportunities to capitalize on the growing demand for construction services, including the AI infrastructure boom.