Labor Shortages and AI Shift Drive Young Workers Toward Construction Trades
The construction industry is facing significant labor shortages, with 92% of Associated General Contractors of America member firms reporting difficulty filling positions and 45% delaying at least one project due to these shortages. Models from the Associated Builders and Contractors project the need to attract 499,000 workers in 2026 alone, while the National Association of Home Builders estimates up to 723,000 workers required annually.
A substantial portion of the current workforce is aging, with about 41% expected to retire by 2031, according to the National Center for Construction Education and Research. Additionally, immigration policies have limited the flow of overseas workers and have pushed many documented workers underground, further constraining labor availability.
In recent years, datacenter construction has notably increased wages for those in construction trades by 25–30% compared with previous roles. This trend, combined with the advancement of AI, is influencing young workers to shift from office jobs to trades. The author predicts AI will largely replace entry-level and many white-collar jobs, making trades more attractive due to their resistance to automation.
Enrollment in trade schools has risen since the pandemic, with an expected growth rate of up to 7% annually through 2030. Specifically, construction-trades enrollment has increased by 23% over the past year. Young workers are increasingly gravitating toward trades, motivated by the higher earning potential and more stable job prospects compared to traditional office roles.
