Survey shows strong demand for data centers and power projects in 2026, even as contractors grow more concerned about recession risks, labor shortages and policy uncertainty.
While data centers and power projects are driving commercial demand, contractors say economic uncertainty and workforce shortages could affect residential and mixed-use construction in 2026, according to a new AGC and Sage survey.
Construction employment declined by 11,000 in December and the unemployment rate among workers with recent construction experience jumped to 5.0 percent, AGC said, even as many firms still plan to add headcount in 2026 if they can find qualified workers amid persistent labor shortages.
October’s construction starts posted headline growth, but the gains were concentrated in a small number of megaprojects. Outside of those high-value builds, activity softened, and the industry’s labor picture dimmed further as job openings and hiring indicators pointed to ongoing contraction heading into 2026.
Construction employment climbed by 19,000 in September as firms accelerated hiring and raised wages to meet demand for public projects and data centers, even as private-sector construction weakened.
RC Legal expert Trent Cotney discusses critical insights for contractors on software integration, business acquisitions, and maintaining strong fundamentals during market slowdowns.
In this episode, RC Legal Insights Expert Trent Cotney discusses a balanced roadmap to align safety accountability with true jobsite control for contractors.