How to Deal with Recruiting Shortages in the Construction Industry

Everyone thinks construction jobs are easy to fill. But try posting a role today, and you’ll get fewer qualified candidates than ever.

The construction industry is facing a real construction labor shortage. Skilled workers are aging out, and the demand for construction projects keeps rising. To make matters worse, trade schools aren't pumping out enough skilled tradespeople to catch up.

Construction companies are stuck in a tight labor market with rising turnover rates. If you're part of a construction business, you're likely feeling the pressure.

This guide breaks down why it's happening and what construction employers can do to fix it.

How are recruitment shortages affecting the construction industry?

Recruitment shortages are hitting every corner of the construction sector.

Construction firms can't find enough qualified workers to meet project demands. That slows down timelines, increases costs, and leaves clients frustrated.

Here are some ways these recruitment shortages are impacting construction firms:

• Project delays and rising costs
  Construction firms can’t fill roles fast enough, which slows down timelines and inflates budgets across construction projects.

• Tighter competition for talent
  A limited pool of qualified candidates means construction companies need to compete aggressively, often driving up wages.

• Strain on current employees
  Fewer workers on-site leads to increased pressure on the current construction workforce, which can hurt safety standards and boost turnover rates.

• Widening skills gap
  The lack of skilled labor today makes it harder to train the next generation of construction workers, putting future projects at risk.

• Slowed industry growth
  Without enough skilled tradespeople, the construction sector can’t keep up with the rising demand for labor and new development.

Why does the construction industry need high-quality talent?

Every industry needs a steady stream of talented people, but it’s especially important in construction. Here’s why:

• Skilled labor keeps projects on track
  Experienced workers know how to spot problems before they happen. That prevents delays, rework, and costly mistakes on construction sites.

• Construction jobs require technical knowledge
  From reading blueprints to using construction software, modern construction skills go far beyond manual labor. Skilled professionals handle complex tasks that untrained labor can’t.

• Safety depends on expertise
  A single error can risk lives. Qualified workers understand safety standards and follow them under pressure, which reduces on-site accidents.

• Stronger teams build stronger businesses
  Construction firms with a skilled workforce deliver higher quality results, earn client trust, and grow their reputation in the construction labor market.

• Skilled tradespeople support long-term growth
  When construction companies invest in top talent, they build teams that can adapt to new technologies, meet future project demands, and stay competitive on a long-term basis.

10 Ways Construction Companies Can Solve Recruiting Shortages

1. Build Talent Pipelines with Trade School Sponsorships

One of the most direct ways to solve the construction labor shortage is by building strong relationships with trade schools.

These institutions are training the next generation of skilled tradespeople, but many students drop out or switch paths due to cost or lack of hands-on opportunities. By offering scholarships, tool stipends, or paid apprenticeships, construction companies can attract early interest from students and secure loyalty before they enter the broader job market. You’re not just waiting for qualified workers to appear; you’re helping create them. Check out the graphic below for a visualization of how this works.

According to Associated Builders and Contractors, 70% of construction firms struggle to find enough workers. Sponsoring students gives your company a head start on tapping into this shrinking pipeline before project delays and hiring challenges escalate.

These partnerships also build your brand within the local construction community. Trade schools are often regional hubs with deep connections to educational institutions and families. When your construction business supports these students, your company becomes the top recommendation when they’re ready to enter the hiring process.

2. Launch “Earn While You Learn” Programs

Many construction companies overlook one of the most effective recruitment strategies: paying people to learn on the job. “Earn While You Learn” programs combine real project experience with structured skills training. Recruits, who are often career changers or high school grads, start earning from day one while gaining the hands-on knowledge needed to succeed in construction careers. This approach removes financial barriers that keep qualified candidates out of the labor force and builds a stronger, more loyal construction workforce.

The impact is measurable. According to the U.S. Department of Labor, 91% of apprentices who complete programs like these retain employment, with an average annual salary of $50,000. These programs also help companies fill roles faster, a major edge in a tight labor market where skilled labor is in short supply.

For construction businesses, “Earn While You Learn” isn’t just a feel-good tactic; it’s a pipeline builder. You’re meeting the demand for labor, building loyalty early, and training future skilled professionals to your standards, all while keeping up with project demands. The image below summarizes the benefits here.

3. Create a Mobile-First Recruitment Process

If your recruitment process isn’t mobile-friendly, you’re missing a large share of potential candidates. Today’s construction workers, especially younger ones, use their phones to find jobs, research employers, and submit applications. A clunky desktop-only hiring process immediately shrinks your candidate pool. Mobile-first hiring means optimizing every stage of the recruitment process for smartphones: one-click job alerts, mobile applications, text-based interviews, and digital onboarding.

The graphic below shows what a mobile-first hiring process might look like:

The data is clear. Mobile devices account for 67% of job applications across all industries. Many candidates even abandon the application process if it can’t be done from their phone. That’s a massive drop-off for firms already struggling with labor shortages.

For construction companies, a mobile-first hiring workflow isn’t just about convenience, it’s about access. Skilled tradespeople are often working jobs, commuting, or out in the field. If your job listings, interview scheduling, and onboarding process don’t work smoothly on a phone, you’re losing qualified workers before they even enter your recruitment funnel.

4. Host Jobsite Open Houses

A jobsite open house gives potential recruits a real-world look at what a career in construction actually involves. Instead of reading job descriptions online, they get to tour an active project, meet current employees, and ask questions in person. 

This kind of direct exposure helps break common misconceptions, like the idea that all construction jobs are low-skill or physically overwhelming. It’s especially useful for reaching high school students, veterans, and unemployed workers who may have the aptitude but lack awareness of the opportunities in skilled trades.

Check out the graphic below for some of the benefits here:

This strategy aligns with what the data shows. A report by CIOB found that even though 68% of young people have a positive view of construction careers, 47% said construction careers were not covered in the careers advice they received whilst in education. 

Meanwhile, organizations that offer hands-on career exposure report higher conversion rates from interested prospects to hires.

For construction firms, open houses are more than just PR, they're a recruitment strategy. You're tapping into a broader talent pool, lowering the barrier for entry, and positioning your company as a strong employer that offers visible, meaningful career development opportunities.

5. Offer Relocation Support for High-Demand Roles

When skilled labor is scarce in your immediate area, relocation support can open access to a broader pool of qualified candidates. By offering to cover moving expenses or providing temporary housing near active job sites, construction companies can attract experienced workers from other regions who might otherwise overlook the opportunity.

Here are some benefits of offering relocation support:

This strategy is especially useful for hard-to-fill roles like electricians, heavy equipment operators, or project managers: positions where experience directly impacts the quality and speed of construction projects.

The numbers highlight the potential. According to a survey by Robert Half, 62% of job seekers said they would relocate for the right job. With the construction labor shortage driving up demand, offering relocation perks can help you attract skilled tradespeople from areas with higher unemployment or lower job saturation.

Relocation support also boosts employee retention. Workers who receive help settling into a new city are more likely to feel supported by their employer, which can lead to stronger long-term loyalty. For construction firms facing urgent project demands, this is a practical and targeted fix that expands your hiring reach and helps stabilize your construction workforce.

6. Recruit from Adjacent Skilled Trades

One smart way to expand your candidate pool is by targeting skilled professionals in adjacent trades. Plumbers, welders, mechanics, and HVAC techs already possess core competencies, like blueprint reading, equipment handling, and compliance with safety standards, that align with many construction roles. Instead of waiting for the perfect construction-skilled candidate, construction companies can create short, focused training programs to transition these professionals into construction jobs without starting from zero.

Here’s how this tactic compares to traditional recruiting:

This tactic is backed by workforce data. The U.S. Bureau of Labor Statistics shows that over 600,000 workers are currently employed in installation, maintenance, and repair trades, many of whom have experience in tools, tech, and jobsite conditions relevant to the construction industry. With the construction industry in dire need of talent, pulling from these related fields is not just strategic, it’s necessary.

This approach also improves employee retention. Adjacent tradespeople often want new challenges or upward mobility, which construction careers can offer through more varied project demands and broader career development opportunities. With the right onboarding, you can level up your construction team with experienced workers who are already halfway there.

7. Use Alumni Networks of Former Employees

Your past employees can be one of your strongest recruitment assets. Many left on good terms, gained experience elsewhere, and would consider returning for the right opportunity, especially on a project-by-project basis.

By maintaining a clean, up-to-date alumni network, construction companies can re-engage former construction workers quickly, bypass lengthy hiring processes, and tap into a pool of people already familiar with your culture, safety standards, and workflow.

Here’s a graphic showing how that works:

This strategy makes sense when you consider turnover. The average turnover rate in construction sits at 21.4%, one of the highest across all industries. But not all turnover is negative; many employees leave for seasonal reasons or contract cycles and are open to returning.

By proactively staying in touch with former team members through email lists, alumni job boards, or mobile apps, construction businesses gain a head start in a tight labor market. And even if these people don’t return themselves, they often refer other qualified candidates from their own networks to help you tap into a broader pool with minimal effort.

8. Offer Micro-Certification Bonuses

Micro-certifications are short, focused training modules that teach job-specific skills, like scaffold safety, rigging, or concrete finishing. When construction employers offer small bonuses for each certification completed, they encourage continuous learning while directly improving jobsite performance. These incentives are cost-effective, easy to track, and help fill skills gaps without pulling employees off the job for weeks at a time.

The image below shows some of the key benefits of this strategy:

According to CITB, 42% report that construction workers lack necessary skills even when hired. At the same time, research from Deloitte shows that companies offering development opportunities and a strong learning culture see 30% higher employee retention rates. Micro-certification bonuses hit both of those pain points: they close the construction skills gap while also improving employee satisfaction and loyalty.

For construction companies, this approach builds a skilled workforce without waiting for external training programs to catch up. It also signals that you're invested in your team's growth, which makes you a more attractive employer in a tight construction labor market.

9. Create Referral Tiers in Employee Referral Programs

Employee referral programs already outperform most traditional hiring methods, but most construction firms stop at one-time bonuses. By introducing a tiered system, you give current employees a long-term reason to keep bringing in skilled professionals. 

For example, the first referral might earn $200, the second $400, and so on. Add extra incentives for referring hard-to-fill roles like project managers or electricians. The result? A self-sustaining recruitment strategy powered by people who already understand your hiring needs.

The results speak for themselves. Referred candidates are cheaper to hire and faster to hire compared to those from job boards or career sites. And according to CareerBuilder, 82% of employers rate employee referrals as the best source for generating the highest ROI in recruitment. For the construction industry, where recruitment challenges are mounting, this is a powerful way to grow a broader talent pool without inflating recruiter costs.

Check out the image below for a breakdown of the benefits here:

Tiered referral programs also boost employee engagement. Workers feel recognized not just for what they build, but for who they bring in. And that makes your construction business a stronger employer brand in a labor market where word-of-mouth is everything.

10. Brand Your Company as a Career Accelerator

Most job listings in the construction sector focus on pay and hours. That’s not enough anymore. If you want to attract skilled labor and reduce turnover rates, you need to show that your company offers more than just a paycheck; it offers a path. 

Emphasize career development opportunities in your recruitment process, like mentorships, paid upskilling, and clear promotion timelines. When potential recruits see a future with your company, they’re more likely to apply and stay.

Companies that invest in employee development see 34% higher retention rates. In a labor market where the demand for skilled workers exceeds supply, being known as a company that promotes from within becomes a competitive edge.

By positioning your construction business as a place where workers can grow their construction skills and move into leadership, you shift your brand from a job provider to a career builder. That helps attract a broader talent pool, especially younger workers looking for long-term construction careers in a volatile job market.

Common Challenges When Recruiting in Construction

Recruiting for construction roles comes with some unique challenges. Let’s unpack a few of those and what you can do to work around them.

1. Relying Too Heavily on Job Boards

Many construction firms default to posting roles on generic job sites, expecting the right skilled labor to apply. But these platforms are saturated and rarely reach tradespeople who rely on referrals or local networks.

How to fix it: Use recruitment agencies that specialize in the construction labor market, build employee referral programs, and partner with trade schools to tap into more targeted talent pools.

2. Ignoring the Hiring Process Experience

Lengthy applications, outdated portals, and poor communication turn off potential candidates, especially in a tight labor market. Construction workers want fast, simple workflows.

How to fix it: Streamline your hiring workflow with mobile apps, text-based communication, and fast interview turnaround. Prioritize an efficient hiring process over administrative tradition.

3. Failing to Offer Career Development

A lot of construction companies pitch the job, not the career. Without visible opportunities for advancement, qualified candidates look elsewhere.

How to fix it: Promote training programs, mentorship, and internal promotion paths in your job ads. Make it clear that you support long-term careers in construction.

4. Not Competing on Culture

In a high-turnover field, employee satisfaction is a major retention factor. Poor jobsite culture or lack of wellness programs make it hard to hold onto workers.

How to fix it: Highlight safety standards, employee engagement efforts, and a positive work environment. Make it known that your construction team is a tight, supportive unit, not just labor.

5. Overlooking Non-Traditional Talent

Construction firms often skip over veterans, career switchers, or adjacent trades because they don’t fit the “ideal” background. That narrows an already limited candidate pool.

How to fix it: Expand your criteria and build flexible training programs to convert potential recruits into skilled tradespeople, even if they’re not the perfect fit on day one.

Wrapping Up

Recruiting challenges in the construction industry won’t solve themselves.

If you want a skilled workforce tomorrow, you need to act today to tighten your hiring workflow, tap into broader talent pools, and invest in career development.

The demand for construction projects isn’t slowing down, and neither is the competition for talent. Revisit your recruitment strategy, fix what’s not working, and start building a team that stays.

Now’s the time to shift from reactive hiring to proactive workforce planning, because in this labor market, speed and strategy aren’t optional; they’re essential for survival.