Navigating the New Construction Labor Pool

This technical report discusses the evolving dynamics of the construction labor market in the U.S., particularly in the wake of the COVID-19 pandemic. It outlines the significant changes in labor costs and availability, driven by factors such as the Infrastructure Investment and Jobs Act and the overhaul of the Davis-Bacon Act. The report highlights the impact of Project Labor Agreements on federally-funded projects and the resulting increase in labor costs. It details how mega-projects have surged in prominence, constituting a larger share of non-residential construction spending, and the challenges they pose to local labor resources. The report also examines the demographic shifts in the workforce, noting the departure of older workers and the implications for labor supply. Strategies for companies to enhance employee training, retention, and recruitment are presented, emphasizing the importance of adapting to a changing labor landscape. The report concludes with recommendations for addressing labor shortages and improving workforce engagement.