Economic Forecast
The Insulator • June 2026
12
Dedicated to keeping its members at the forefront in their industry
T
he construction industry needs to 
attract an estimated 349,000 net new 
workers in 2026 to meet demand for 
construction services, according to 
a proprietary model developed and released 
today by Associated Builders and Contractors. 
In 2027, the industry will need to bring in 
456,000 new workers to meet demand as 
construction spending growth is poised to 
resume for the first time in years.
ABC’s proprietary model uses the historical 
relationship between inflation-adjusted 
construction spending growth, sourced from 
the U.S. Census Bureau’s Construction Put 
in Place survey, and payroll construction 
employment, sourced from the U.S. Bureau 
of Labor Statistics, to convert anticipated 
increases in construction outlays into additional 
demand for construction workers at a rate 
of approximately 3,450 jobs per $1 billion in 
additional construction spending. This model 
also embeds the current level of job openings, 
industry unemployment and projected industry 
retirements into its computations.
“If current consensus forecasts hold true, 
the construction industry will need to bring in 
349,000 new workers in 2026 just to keep the 
supply and demand for labor in equilibrium,” 
said ABC Chief Economist Anirban Basu. 
“Failing to do so will worsen labor shortages, 
especially in certain occupations and regions, 
placing further upward pressure on labor costs.
“The industry needs to attract fewer workers 
than in recent years, a decline that can 
be traced to extremely modest spending 
growth forecasts for 2026 and 2027,” said 
Basu. “Given current assumptions regarding 
CONSTRUCTION INDUSTRY MUST 
ATTRACT 349,000 WORKERS IN 2026 

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