ECONOMIC UPDATE
www.mrca.org  —  Midwest Roofer
26
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 prospective industry growth, 
a majority of new worker demand in 2026 will be 
attributable to retirement rather than increased 
CONSTRUCTION INDUSTRY
MUST ATTRACT 349,000 WORKERS IN 2026

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