Fact of the Week – 3/9/2026

Why It Matters

The stark union disparity signals shifting labor dynamics that could affect wages, safety standards, and project costs, while the looming shortage threatens construction timelines and cost inflation.

Key Takeaways

• 90% of construction workers in 24 states are nonunion
• 9 million nonunion vs 0.995 million union members
• 2026 worker shortage projected at 349,000 jobs
• ABC urges policies preserving worker choice across states
• Industry also grapples with inflation, interest rates, immigration

Pulse Analysis

The construction sector is witnessing an unprecedented tilt toward non‑union labor. According to data released by the Associated Builders and Contractors (ABC), 90 percent of workers in 24 states were not affiliated with a union in 2025, translating to roughly 9 million non‑union employees versus just 995,000 union members. This marks a historic low for union representation, a trend that analysts attribute to a combination of regional labor market conditions, the rise of subcontracting models, and the perceived flexibility of non‑union contracts. As the workforce composition shifts, employers and project owners must reassess how labor relations influence productivity, safety protocols, and wage structures.

Compounding the union gap is a projected shortfall of 349,000 construction workers in 2026, a figure that underscores a deepening talent crunch. Demographic headwinds, an aging skilled‑trade cohort, and tighter immigration policies have throttled the pipeline of new entrants. The shortage is already inflating labor costs and delaying critical infrastructure and housing projects, prompting developers to offer premium wages and accelerated training programs. In a market where labor is the most volatile input, the scarcity could ripple through supply chains, pushing overall construction expenses higher.

ABC is leveraging these statistics to call on state legislators for policies that level the playing field and preserve worker choice. Proposals include expanding apprenticeship funding, simplifying licensing requirements, and ensuring that collective‑bargaining rights do not become a barrier to entry for non‑union firms. At the same time, broader macro‑economic forces—rising inflation, volatile interest rates, and uncertain immigration reforms—add layers of complexity to the industry’s recovery. Stakeholders who navigate these dynamics with data‑driven strategies will be better positioned to mitigate risk and sustain growth in the coming years.