The State of Infrastructure in 2026: Why Public-Private Partnerships Need Skilled Staffing Solutions
November 6, 2025
The construction labor shortage continues, causing project delays, reputational damage, and the inability to bid for larger projects due to unscalable workforces. Organizations across all sectors need to consider innovative staffing solutions in construction to overcome these challenges.
Public sector bodies working on local, state, or federal projects should consider the benefits that construction staffing agencies can provide. Infrastructure staffing, in particular, requires on-demand solutions that only experienced private companies can provide.
The Growing Demand for Skilled Labor in Infrastructure Projects
In 2024, 91% of construction firms reported difficulty in filling positions. The same research suggests that in 2025, it will take an additional half a million construction workers to fill talent shortfalls.
Factors contributing to the labor gap include:
- An aging workforce
- A decline in vocational training programs
- Increased demand due to federal infrastructure initiatives
- Rapidly degrading infrastructure requiring extensive work
- Shrinking public sector budgets
Construction industry workforce development is being outpaced by demand. The answer? Temporary staffing solutions, provided by experienced construction staffing agencies.
Role of Staffing Firms in Addressing Labor Gaps
Services offered by construction staffing firms can include:
- Temporary labor for short-term or seasonal assignments
- Temporary-to-permanent placements
- Direct hire services for full-time skilled tradespeople
- Project-based staffing for specific scopes or phases
Infrastructure project leaders who decide to work with private staffing firms are investing in flexible workforce scaling without the commitment of permanent hires. They get access to a broader, more diverse talent pool, and can reduce recruitment timelines and costs, protecting state and federal budgets.
Public-Private Workforce Partnerships
Infrastructure project management is complex. Many public sector organizations are turning to private partners, creating public-private partnerships, also called PPPs or P3s.
There are many types of PPPs, including initiatives to finance projects and consolidate disparate project elements under one organizational umbrella. With American infrastructure currently degrading and rated as “C” per the ASCE, leveraging PPPs for workforce development could be the key to reinvigorating the sector.
Case Studies: Effective PPPs in Action
Examples of public-private partnerships in infrastructure that have seen success include the Million Women in Construction Community Pledge. This aims to increase women's participation in the construction workforce, promoting equity while also addressing continuing construction talent shortfalls. The initiative was launched by the U.S. Department of Commerce and supported by private construction firms such as Shawmut Design and Construction, McKissack & McKissack, Power Design, Mortenson, and more. A steady rise in the number of women in construction since 2024 suggests the initiative is working.
Private toll roads have often been financed by non-public-sector organizations, but the scalability of projects has always been an issue. Expert staffing firms support a scalable workforce by providing on-demand personnel with the right skills and compliance knowledge to get to work right away.
Compliance and Regulatory Considerations
In all types of PPPs, adhering to construction workforce compliance regulations is essential to avoid fines and project shutdowns. Staffing solutions companies are experienced in navigating the complexities of compliance, providing reassurance to public sector project leaders.
State and federally funded projects must ensure construction labor regulations are met, including prevailing wage laws, Occupational Safety and Health Administration standards, and Equal Employment Opportunity regulations. Staffing firms ensure compliance by conducting thorough background checks and credential verifications. They provide workers with necessary safety training and certifications, and keep up to date with changing labor laws and regulations.
Future-Proofing the Public Sector for Effective Infrastructure Delivery
The advancing use of technology in recruitment and training will put additional strain on public sector organizations that don’t necessarily have the infrastructure or budgets to support updating legacy systems to keep pace.
Federal job cuts also impact the need for temporary staffing: where there’s no budget to replace permanent hires, temporary staffing solutions provide scalable solutions from a diverse and skilled talent pool.
Discover more by connecting with HireQuest Direct, expert staffing partners experienced in construction and infrastructure across both the private and public sectors. Our leading, on-demand staffing franchise has over 120 locations nationwide, with personnel ready to work on all types of state or federal projects. Workers are carefully vetted with a focus on workplace safety, compliance, and relevant skills to keep your projects running on time.
Get in touch to learn more.