How Can Construction Companies Combat the 2024 Labor Shortage?

February 20, 2024
Featured image for “How Can Construction Companies Combat the 2024 Labor Shortage?”

The construction industry is set to face an unprecedented labor shortage in 2024, with an estimated need for an additional 501,000 workers to meet demand. This shortage poses significant challenges for construction companies striving to complete projects on time and within budget. However, strategic use of staffing solutions can offer a viable path to combating these challenges. Here’s how:

Understand the Scope of the Shortage

First, it’s crucial to understand the magnitude of the labor shortage and its implications. The construction industry’s labor demand is outpacing the supply of skilled workers, exacerbated by high retirement rates and a historical reluctance among younger generations to enter the trades. This shortage has already led to project delays, increased labor costs, and the competitive market for hiring skilled workers.

Leverage Staffing Agencies

Staffing agencies specializing in the construction industry can be invaluable in addressing labor shortages. Agencies like Skillforce have access to a pool of skilled workers ready to be deployed to various projects. We can provide both short-term solutions to immediate needs and long-term staffing strategies that align with your project timelines and labor requirements, from skilled workers to apprentices and even managerial staff.

Embrace Apprenticeship and Training Programs

Investing in apprenticeship and training programs can help develop a new generation of skilled workers. While this is a more long-term approach, it’s essential for the sustainability of the construction workforce. Encouraging young people to pursue careers in construction through apprenticeships and training can help mitigate future labor shortages.

Adopt Flexible Workforce Strategies

Flexibility is key to navigating labor shortages. This means being open to adjusting project timelines, exploring alternative construction methods, and adopting new technologies that can reduce labor dependence. A flexible approach allows companies to adapt to the available workforce without compromising project quality or deadlines.

Focus on Retention

Retaining your current workforce becomes even more critical in the face of a labor shortage. This involves creating a positive work environment, offering competitive wages and benefits, and providing opportunities for growth and development. Retention strategies not only help maintain your current workforce but also make your company more attractive to potential hires. Here at Skillforce, we implement a few different strategies to keep our employees happy, healthy, and motivated:

  • Employee of the Month Recognition with gift card & social media shoutout
  • The opportunity to earn competitive PTO, health, and 401k benefits
  • Offering our employees the best jobs, and the commitment to having ongoing, consistent work
  • We tell our employees that if they work hard for Skillforce, they can retire here, because we have the jobs, and we have the benefits

Explore Technological Solutions

Technology can play a role in mitigating labor shortages by improving efficiency and productivity on construction sites. From project management software to advanced construction techniques like prefabrication and modular construction, technology can help streamline operations and reduce the overall demand for labor.

Cultivate a Culture of Safety and Inclusion

A safe and inclusive work environment is attractive to existing and potential employees. Prioritizing safety and fostering a culture of inclusivity can enhance your company’s reputation as a desirable place to work, helping to attract and retain skilled labor. We supply every employee with a hardhat, safety vest/shirt, glasses and gloves. We also emphasize the importance of safety on the jobsite during our onboarding process – highlighting adherence to each individual client and projects’ safety protocols. Skillforce even takes the extra step of creating unique, site and customer-specific safety plans and safety workshops based on the clients’ particular needs.

In conclusion…

The 2024 labor shortage presents a formidable challenge to the construction industry, but it also offers an opportunity for companies to rethink and innovate their approach to workforce management. By utilizing the tips above and leveraging staffing solutions like Skillforce, contractors can ultimately get their time back and get back to doing what they do best. Time is money, and Skillforce can give contractors the freedom to reallocate their time back to production-related activities, rather than spending it on recruitment efforts. Skillforce is also able to significantly reduce contractor risk as we carry the cost and burden of the employees (insurance costs, liability, unemployment, etc) rather than them handling it directly as they would with in-house employees.

The path forward requires a combination of immediate action and long-term staffing solutions in order to ensure that the construction industry can continue to build and thrive in the face of adversity.

Interested in talking more with a Skillforce professional about how we’re meeting this challenge? Fill out our quick form and we’ll be in touch within 48 hours:


  • Construction Spending (U.S. Census Bureau)
  • Construction Employment (U.S. Bureau of Labor Statistics)
  • Construction Job Openings (U.S. Bureau of Labor Statistics)
  • Consumer Price Index (U.S. Bureau of Labor Statistics)
  • Job-to-Job Flows (U.S. Census Bureau)
  • Construction Worker Demographics (U.S. Bureau of Labor Statistics)
  • Forecasted Construction Spending Growth (Associated Builders and Contractors)