The Cost of Labor Shortages in Construction – And How to Stay Ahead

October 27, 2025

The Cost of Labor Shortages in Construction – And How to Stay Ahead

 

The shortage of qualified employees continues to be a challenge across multiple areas of the construction industry. Every sector of the workforce is impacted, from builders and contractors to skilled professionals in areas like carpentry and electrical.

Data from the Associated Builders and Contractors states that the industry is facing a construction labor shortage of 439,000 people. In 2026, it is expected that the number will climb to 499,000 workers. Without a skilled construction workforce, delays happen. Projects often run over time, resulting in extensive added costs. Customers and clients lose trust in organizations while fines and fees tank profit margins. Enhancing your workforce with on-demand staffing for construction could be the answer.

The Hidden Costs of Labor Shortages

Construction labor shortages create numerous consequences for organizations, including:

Project delays

Taking longer to complete projects means paying employees for longer at potentially inflated overtime rates. Extended project delays and costs also impact your clients’ ability to use the space, and that can create financial losses for them. The ultimate outcome? Dissatisfied clients who are more than willing to share that frustration with friends and colleagues.

Increased costs

Ongoing construction labor shortages often trigger the need for companies to find additional support. There is also the risk of rework. If workers rush or lack the necessary skills for the job, that leads to significant cost implications. 

To keep the most skilled workers, your company may need to bid higher on projects, often limiting your ability to land the most lucrative projects. When other companies can do it for less, your labor shortage could limit your company’s growth.

Safety risks

Overworked crews make mistakes. They could be involved in accidents or may rush processes that create unsafe working conditions. As noted by OSHA, long work hours lead to increased stress, poor eating habits, and illness. It also contributes to more on-the-job injuries that are otherwise avoidable, leading to employee absence and costs such as workers' compensation.

Why Traditional Hiring Falls Short

Recruiting in construction is a time-consuming process. If you’re trying to build a skilled construction workforce, each person is a critical asset. Rushing decisions isn’t an option. Yet you cannot wait to onboard enough help once your project starts rolling.

Because hiring in construction is time-consuming and unpredictable, doing it yourself is challenging. Seasonal and project-based demands make it nearly impossible to retain the best talent. In addition, every project requires a unique skillset. That means creating the perfect workforce internally isn’t always possible.

On-Demand Staffing as a Competitive Advantage

Using on-demand staffing for construction resolves these problems while providing several critical advantages:

  • Flexible labor is available. That means you have the specific skilled labor you need. You can scale your contractors and trades professionals up or down quickly.
  • Immediate access to vetted and safety-trained workers removes obstacles to getting a new project off the ground. It also means you can replace team members faster when there’s illness or other issues.
  • There’s less downtime for your company, making it easier to meet client expectations.
  • You can meet safety and compliance requirements more effectively. That reduces costs by avoiding costly fines.
  • The quality of work improves. At the end of the day, that’s a critical step in protecting your business’s reputation.

The right team matters. On-demand staffing for construction companies enables them to meet today’s needs, regardless of how they evolve tomorrow.

How HireQuest Direct Helps Contractors Stay Ahead

At HireQuest, employers have access to workers nationwide, along with locally owned and operated offices for personalized support. We specialize in construction and trades support, including general labor, heavy equipment operators, and site cleanup crews. That’s the team you need when you need it.

Additionally, we offer modern support for workers. Benefits include daily pay options to support and retain motivated workers. This reduces turnover and absenteeism.

Importantly, we’ve built our team to maintain a safety-first mindset. Safety-focused workers build trust and business success while ensuring your company is always growing.

Protect Your Future Amid Construction Labor Shortages

With on-demand staffing for construction, having a skilled construction workforce is easier than you realize. HireQuest is the first call construction leaders make when they cannot afford delays and mistakes. Connect with your local HireQuest Direct office today to keep your projects fully staffed and on schedule.