How To Face A Potential Labor Shortage in construction As A Contractor?

No matter how long you’ve been a contractor, by now you should know that good tradesmen are hard to come by.

And right now, considering Trump’s deportation policies targeting undocumented workers (a significant portion of construction employees)…

Contractors are about to face a harsh labor shortage.

So, what can you do as a business owner to make sure you’ll still have enough workforce to continue growing your business?

Let’s see your options…

Why Is There Labor Shortage In The Construction Industry?

You’ve probably dealt with all types of workers.

Young bloods have bigger aspirations and hate being told what to do…

The ones who know a thing or two about construction either have a drug problem, an alcohol problem, or just don’t show up…

And the older ones simply can’t do the hard work anymore.

So, where do you find good tradesmen when all signs point towards a labor shortage in the construction industry?

Trade-specific job boards like CraftJack (now Angi), constructionjobs.com, ihireconstruction.com are specifically designed to help contractors connect with tradesmen. There’s a high chance you’ll find a good employee here.

LinkedIn, Indeed, Glassdoor, and other job platforms can also work, but you need to filter the applicants more.

You know the best part about the people attending these trade schools is that they want to be there!

You can find young tradesmen who are eager to learn and improve their skills, and most importantly, they want to be a tradesman.

Here’s a list of the best trade schools in the U.S. in 2025.

This is a wild card, because the people who visit job fairs (unless they’re niched to construction jobs) are just looking for a job, not a construction job.

Hire the one who just wants a job and there’s high chances they’ll quit the next few months because the work is too hard. Or even worse, you’ll want to fire them because they’re useless.

Associations like Associated Builders & Contractors, American Institute of Constructors, National Association of Home Builders, North American Deck & Railing Association, National Wood Flooring Association, etc. is where you’ll find a lot of other tradesmen.

The only problem is that a lot of these are also contractors, and they’re also looking for people to hire.

However, if you’re lucky enough to find a tradesman in these associations, pitch your offer, because it’s very likely these are knowledgeable people who want to work.

How Else Can Contractors Attract Employees?

These days most people apply for jobs directly online. So we came up with a simple idea to implement in our clients’ websites.

We started creating ‘Careers’ pages on our clients’ websites, where potential employees can fill out a form, describe themselves, their skills, their motives, and submit an application.

This resulted in several high-quality applications from tradesmen who wanted to work for a reputable company that “looked very serious because of the website”.

Another option to get some applicants for jobs (but also a wild card) is to run a Facebook ads campaign and let people in your area know you’re hiring.

These ads would be very meticulously targeted so they don’t appear for people who have nothing to do with construction.

If You Already Have Great Employees, Here’s How You Keep Them

This is a very important thing you need to hear…

But even if you think you’re in the safe zone employees-wise, you’re not.

Because when other contractors are looking to hire, they’ll do and say a lot of things to attract good tradesmen on their teams.

Like:

So, if your ‘good employees’ are OK leaving for all sorts of promises (even if they never materialize), you have a retention problem.

Retention Rate Among Your Employees During A Labor Shortage

Let me first remind people what does ‘retention’ mean.

Employee retention means your ability to keep your employees for as long as you want to, without them wanting to quit.

High retention rate among employees mean your employees are satisfied with their jobs and want to continue working for you.

Low retention rate among your employees mean you have a lot of workers who are quitting and going to work for a different contractor.

Again, it’s important to understand that if there’s a labor shortage, a lot of employers will do everything they can to find and hire a good tradesman in their team.

So, you’ll want to make sure your employees are satisfied and happy in the workplace.

How To Increase Retention Rate Among Employees

There are more things you can do to create a supportive and enjoyable workplace, but these will move the needle the most.

Increase overall job satisfaction. Make sure your employees are happy with their benefits, with the culture, the leadership, and the work environment.
Career development. We all want to see progress in our careers, and as long as you show your employees that they can climb up the ladder, you’ll help them fulfill their career goals.
Recognition and appreciation. A compliment goes a long way, and I’m sure you know this. Show your employees that you appreciate them and recognize their hard work.
Bonuses. As much as we’d like to think ‘money doesn’t bring happiness’, you know very well some extra cash will improve everyone’s life and remove a lot of worries. Bonuses can be gifts, some extra cash, or even a paid vacation.
Company culture. Invest in taking your employees to dinners, team building activities, parties, shows, etc. You can do it on company time or not. What it does is show your employees you care about their wellbeing and you don’t want to work them until exhaustion.

So, Can Your Contracting Business Face A Labor Shortage?

I’m sure you can because I’ve given you everything you need to do it.

Go on trade-specific job platforms, visit trade schools and job fairs, and join trade associations. You can also create a ‘Career’ page on your website and try running an ad to find potential employees.

If you’re happy with your employees now, just focus on improving your retention rate and giving them the best work-benefits they can find in your area.

But you need to understand this…

A labor shortage is likely to be right around the corner because of the new deportation policies.

If you still want to have great tradesmen in your team, you’ll need to be a step ahead of everyone. If you need more information on how to create a great company culture, shoot us a message and we’ll help you out!