We are facing a number of challenges in the workforce in 2025. Construction is currently dealing with a skilled labor gap, as it struggles to find workers with the right skillset. This is driven by the fact there is an aging workforce, high turnover, disengagement, and the rise of trends like quiet quitting.
We are also seeing other new trends in the workplace in general that stem from the evolution of work five years ago. The COVID-19 pandemic threw things into a tailspin to be honest. Remote work surged in some industries. At the same time, many workers began to evaluate their priorities, seeking better work-life balance. This ultimately led to the Great Resignation in the 2021-2022 timeframe when millions voluntarily left their jobs, especially low-wage, high-stress jobs like those in hospitality and retail. Workers wanted higher pay, flexibility, and healthier and safer work environments.
Now, we are seeing return-to-office mandates, hybrid setups, and challenges related to managing hybrid teams. As all of this has happened, we are seeing wages stagnate and inflation soar. And we are seeing the rise of technology, which leaves many workers concerned about job security. Interestingly, a recent episode of The Peggy Smedley Show explored the idea that robotics create uncertainty in blue collar work while gen AI (artificial intelligence) creates uncertainty in white collar work. It seems all jobs are prime for some sort of disruption.
The State of Construction
For the construction industry specifically, we are at an interesting tipping point. Spending on projects underway in July decreased 0.1% from June, with declines in private nonresidential and multifamily construction. In terms of jobs, construction sector employment declined by 7,000 positions in August and has remained little changed since December. Homebuilding in particular has slowed. And, yet the unemployment rate in construction is only 3.2%—likely due to the fact construction workers are simply leaving the industry.
The 2025 AGC (Associated General Contractors) of America and NCCER (National Center for Construction Education & Research) Workforce Survey found 16% of construction firms reported owners had canceled, postponed, or scaled back projects resulting from changes in demand or need due to tariffs. Roughly one-fourth of contractors experienced project setbacks resulting from changes in demand or need due to policy changes in areas such as federal funding, taxes, or regulations.
Perhaps not surprisingly, 92% of contractors report they are having a hard time filling open positions—something that has been a reoccurring trend for the past several years.
How to Evolve at Work
The point here is this: the job market is volatile. As Peggy Smedley always says, the pace of change is only going to continue to speed up. And companies have a tall task ahead of them: The solutions are myriad, with the need for more funding, education, and technology, just to name a few options.
But let’s take a moment to talk directly to the workers, those currently in construction or those considering construction. Workers must be prepared for change. Workers must be prepared for an evolution of their career. Workers must be prepared for the future of work.
How can we do this? Here are a few ideas to keep your career fresh and exciting:
- Have a clear objective for your work
- Master a skill that has long-term potential
- Cultivate soft skills and durable skills to stand out
- Embrace AI and become digitally literate
- Have a ready-and-willing-to-learn mindset and a teachable spirit
- Be open to upskilling and reskilling
- Carve out time for deep focused work
- Align short-term objectives with long-term goals
- Create a vision/roadmap for your career
Contributing to something bigger and advancing a career is key to ensuring workers feel engaged with their jobs. What will you do today to stay engaged with your job?
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