Construction companies continue to face labor shortages, rising costs and supply chain challenges, even as workers remain largely confident that artificial intelligence won’t replace their jobs. That’s according to BambooHR’s State of the Workforce 2026 survey.
The survey, released on June 2, 2026, found that 80% of construction leaders are concerned younger generations are not entering the trades quickly enough to sustain the industry. Nearly three-quarters (72%) said skilled labor shortages are already affecting their business operations.
At the same time, economic pressures are forcing companies to make difficult workforce decisions. Sixty-nine percent of construction leaders said they have adjusted headcount or compensation because of rising material costs and supply chain disruptions, while 47% reported delaying, reducing or freezing hiring as a direct result of those challenges.
Supply chain issues continue to affect workers in the field. Among construction employees surveyed, 84% said material sourcing challenges have disrupted their work during the past six months. The report also found that 77% of construction workers feel their profession is undervalued, citing a lack of understanding about the complexity of construction work among those outside the industry.
While AI is reshaping workforce discussions across many sectors, construction employees appear less concerned about being replaced by the technology. More than 80% of respondents said their skills provide protection against AI-driven job displacement. Additionally, 66% said they would recommend construction as a career path to younger workers.
Many workers also see long-term opportunity in the industry. Nearly half (48%) believe construction will face an even greater labor shortage over the next five years, creating continued demand for skilled workers. However, construction leaders expect technology to play a larger role in the future. Forty-eight percent said autonomous and robotic technologies could meaningfully reduce the need for human labor within the next decade.
The findings were part of a broader BambooHR report examining the relationship between employers and employees across multiple industries, including the impact of workforce challenges, operational pressures and emerging technologies.
