The U.S. construction industry’s need for labor is soaring and will need half a million new workers next year while AI giants ramp up spending

Recent data on the U.S. job market has flashed some worrying signs lately, but the construction industry sees greater demand for workers.

The Associated Builders and Contractors trade group estimated in a report last month the industry will need to bring in 456,000 new workers in 2027, up 30.7% from the 349,000 needed this year.

“Failing to do so will worsen labor shortages, especially in certain occupations and regions, placing further upward pressure on labor costs,” ABC Chief Economist Anirban Basu warned in a statement.

But despite the AI infrastructure boom, the majority of new-worker demand this year is due to retirements instead of increased need for construction services, he added. This year’s forecast also marks a decline from previous years.

Still, ABC said overall construction spending is poised to break a slump and return to growth for the first time in years. And according to its model, every additional $1 billion spent on construction translates to demand for 3,450 fresh jobs.

If spending forecasts prove to be overly conservative, then the industry will need even more workers, Basu said. In fact, ...