Construction Labor Shortage Sharpens in 2026, With Immigration Policy a Wildcard

August 28, 2026

The construction industry’s labor shortage isn’t easing in 2026 — if anything, the picture is getting more complicated, with immigration policy now a major variable in how bad the gap gets.

Associated Builders and Contractors estimates the industry needs to attract roughly 349,000 net new workers this year just to keep pace with demand, a number that reflects construction spending forecasts, job openings, unemployment data, and retirement trends. That’s actually a smaller gap than some earlier 2026 projections, but ABC’s chief economist cautions the shrinking number partly reflects softer construction spending growth — not a solved labor problem.

Immigration is the wildcard. Roughly a quarter of the construction workforce nationally is foreign-born, a larger share than the overall labor force, which makes the sector unusually exposed to enforcement shifts. Industry surveys indicate over a quarter of construction firms have already been directly or indirectly affected by immigration enforcement activity, and data suggests the flow of undocumented workers into the country slowed sharply in 2025 while voluntary departures increased.

Locally, Oregon’s building trades unions have invested more than $30 million in training facilities and spend over $10 million annually on apprenticeship programs, without public funding — one of the bright spots industry watchers point to. Programs through Portland Community College, Oregon Tradeswomen, and similar organizations continue to build a pipeline, but few expect it to close the gap quickly.

For contractors, the practical takeaway echoed across industry analysis is the same: firms investing in internal training, apprenticeship partnerships, and retention now are better positioned than those hoping the labor market corrects itself.

Sources:

Construction Dive, “Construction’s new worker demand drops to 350,000 in 2026” — https://www.constructiondive.com/news/labor-demand-gap-shrinks-abc-construction-staff/810681/
CIC Construction, “Construction Workforce Shortage 2026” — https://cicconstruction.com/blog/half-a-million-short-the-construction-workforce-crisis-reshaping-project-delivery/
NW Construction News, “The $1 Million Career Nobody’s Talking About” — https://nwconstructionnews.com/the-1-million-career-nobodys-talking-about-why-oregon-and-washington-cant-find-enough-construction-workers/