Why is It So Hard to Find Skilled Labor?

Noticing that it’s getting hard to find skilled labor? You’re not imagining things. Businesses across various industries are struggling to find qualified and experienced trade workers. From plumbers and electricians to welders and machinists, these professionals keep America running. Without them, crucial infrastructure and manufacturing projects are on shaky ground.

 

Strong administrative and leadership teams can’t replace the hands-on work tradespeople provide. When skilled workers are unavailable, companies struggle to remain productive and drive growth. Leaders find themselves choosing between managing understaffed job sites and hiring less-qualified workers, both of which compromise workplace safety.

 

It may seem like an impossible situation, but realistic solutions are within reach. This article examines the factors driving the skilled labor shortage and provides practical strategies for businesses to remain competitive, ensure safety, and manage projects effectively.

Situation: Is There a Skilled Labor Shortage?

Everywhere you look, the conversation circles back to a job shortage in America. Although people are staying unemployed for longer, the real problem is a mismatch. Unemployment rates in trade professions, such as construction and durable goods manufacturing, are below the national average of 4.8%. For these employers, the bigger problem is finding skilled labor.

 

In the Associated General Contractors of America’s (AGC’s) 2024 Workforce Survey:

• • 94% of construction firms reported struggling to fill skilled labor roles.

• • 39% reported having more difficulty filling those roles this year than last

• • 28% had 11 or more unstaffed hourly roles than they did last year

 

ABC’s chief economist, Anirban Basu, estimates that the construction industry needs to attract 439,000 new workers in 2025 to meet demand.

 

Other skilled labor-dependent industries are experiencing similar issues. A study by McKinsey  & Company predicted that less than 10% of electricians and 2.7% of welders, cutters, solderers, and braziers would still hold those jobs through 2032. That’s a staggering level of turnover.

 

These skilled trade shortage statistics paint a challenging picture for companies across the board. 

4 Reasons You’re Having Trouble Finding Good Employees

When it’s hard to find employees, the first step is to examine the broader labor market. As of August 2025, the labor force participation rate is 62.3%. That indicates over a third of working-age adults are unemployed and not seeking employment. For companies that rely on skilled labor, this reality creates an uphill battle before industry-specific challenges even come into play.

 

Unqualified or Underqualified Workers

For many companies, the problem isn’t just a matter of supply and demand. People are applying for jobs, but applicants don’t meet the minimum requirements.

 

Among respondents to the AGC’s recent Workforce Survey, 62% reported that their biggest challenge in hiring was that available candidates aren’t qualified to work in contracting. The problem may be a lack of skills, a lack of certification, or both. Another 43% said candidates lacked basic credentials, such as a work permit or a clean background check.

 

Underqualified candidates leave employers in a difficult position, but not an impossible one. If external applicants are subpar, businesses can gain a competitive edge by upgrading their training options.

 

Aging Workforces

Poorly qualified candidates wouldn’t be as much of a problem if there were enough workers to fill the gap. Unfortunately, America’s working-age cohort is advancing toward retirement, and the trend is particularly noticeable in the skilled labor workforce. More than 20% of construction workers are 55 or older, while only 10% are under 25.  

 

Fewer young workers are entering these fields to replace retirees. Part of the issue is a lack of interest, with few young adults truly understanding the benefits of a trade career.

 

Perception of Trade Professions

In a 2024 survey of Gen Z, aged 13 to 28 in 2025, 47% of respondents stated that the media portrays skilled labor professions in a negative light. Only 17% reported that high school educators explained the benefits of vocational training, compared to 66% who said the same about bachelor’s degrees. 

 

Unsurprisingly, 76% of students still feel a stigma associated with choosing a vocational school over a college education. A large-scale cultural shift will take time, but businesses can still make a positive impact at the local level by investing in outreach and engaging with youth communities.

 

Competition From Other Industries

A common misconception claims, “Nobody wants to work these days.” Critics often refer to younger workers, who some wrongly describe as lazy or uncommitted. 

 

The statistics paint a different picture. In July of 2025, the youth labor participation rate was almost 60%  — slightly lower than the overall average, but this age category includes those still pursuing education. Many of them spend their summers participating in educational programs.

 

That 60% includes over 21 million young people. Of those, approximately:

• • 1.3 million worked in construction

• • 1.2 million worked in manufacturing

• • 3 million worked in education or health services

• • 3.6 million worked in retail

• • 5.4 million worked in leisure and hospitality

 

Industries like hospitality and retail often attract more young workers than skilled trades. For some, the appeal may be the opportunity for seasonal work. Unfortunately, skilled work continues to draw the short straw after these young people enter the full-time workforce. Among 25 to 34-year-olds:

• • 2 million work in construction and extraction

• • 1.8 million work in production and manufacturing

• • 1.1 million work in installation and repair

 

Meanwhile, 3.4 million work in administration and 6.3 million work in offices. Workers on the upper end of this range may be more difficult to attract to skilled labor careers, but this may change as artificial intelligence (AI) threatens higher-level office and administrative jobs.

 

Searches for Greener Pastures

Skilled labor vacancies aren’t limited to entry-level positions. Businesses are losing experienced workers at all levels of experience, leaving them scrambling to fill the gaps.

 

 

According to McKinsey’s recent data, the trade professions currently have a distressingly high churn rate. Out of 1,625 filled jobs recorded in 2022, analysts expect 1,194 of those workers to leave for a new opportunity. That’s a churn rate of nearly 74%. The churn rate is only slightly lower for electricians, at 60%, and for welders and solderers, at 65%.

 

 

Reducing churn is a powerful way to ease the skilled labor shortage. When you retain your top tradespeople, your hiring needs decrease, allowing you to maintain steady productivity. Of course, no business will ever have a zero churn rate, so it’s essential to continue recruiting at all experience levels.

How to Find Good Workers

Finding good employees can be challenging, even in a healthy labor market. Employers in construction, manufacturing, and other trades must go beyond traditional hiring methods to attract and retain the right talent.

 

 

This process doesn’t have to require massive investments of time or money. If you’re already feeling the strain of understaffing, consider implementing one or two of these strategies as a starting point. Then, as your staffing picture improves, you can adopt additional strategies to enrich your talent pipeline.

 

 

Provide Competitive Wages and Signing Bonuses

In early 2025, the research organization Gallup surveyed over 10,000 U.S. workers to determine what they looked for when considering a new job. For 54% of respondents, a significant increase in income or benefits ranked as “very important.” Before the pandemic, that number was just 41%. 

 

Given the state of the economy, it’s not surprising that people are prioritizing higher pay. Consumer prices jumped 0.4% in August alone, reaching 2.9% for the last 12 months. Basics like food and energy are placing a particular strain on budgets, and tradespeople are seeking higher wages to keep pace.

 

Many employers have already adapted. Among AGC respondents, 61% reported that they had increased their base pay rates more than in the previous year, while another 20% reported similar increases.

 

Signing bonuses offer an extra boost and are more widely used than before the pandemic. They are particularly common in healthcare and beauty services roles, but can still be a novelty in skilled labor. Those who offer them have the chance to stand out.

 

Emphasize Work-Life Balance and Employee Wellness

While pay and benefits are crucial, Gallup’s latest poll revealed that nearly 60% of workers rank work-life balance and wellness as “very important” when considering a new job, making it an even bigger priority than compensation.

 

Historically, skilled trades have not had the best reputation for work-life balance. Many people associate them with long hours, unpredictable schedules, and seasonal variability.

 

That perception may seem like a liability at first, but savvy employers can use it to their advantage. Cultivate a culture and operational style where work-life balance matters, and make sure employees know that you practice what you preach. The focus on employee wellness shows no signs of slowing down, so this long-term strategy can yield significant benefits years down the line.

 

Offer Apprenticeship Programs

With few young people choosing trades, companies need to seek out candidates for entry-level roles actively. One option is to sponsor a Registered Apprenticeship Program, a federally recognized training pathway that offers paid learning opportunities.

 

Apprentices receive on-the-job training in the skills they need for their chosen fields. They graduate with nationally recognized credentials and average post-apprentice earnings of $80,000 in their first year after completion. That’s almost $20,000 more than associate degree holders and over double the average annual pay for high school graduates. 

 

For employers, apprenticeships are more than just training; they’re an investment in long-term workforce stability. By offering these programs, companies not only strengthen the overall pipeline of skilled workers but also build lasting relationships with early-career employees. This approach helps address the skilled labor shortage while positioning your organization as a trusted employer of skilled trades talent for years to come.

 

Invest in Career Development

Finding good staff is essential, but keeping them is equally important. A robust career development program can help businesses combat the trend of underqualified skilled labor candidates, both by attracting top talent and providing existing workers with a reason to stay.

 

According to a 2024 Gallup poll, businesses that invest in employee development are 11% more profitable and twice as likely to retain workers. Meanwhile, “career growth opportunities” are the leading reason for changing jobs.

 

Effective training in skilled labor roles should be job-focused, allowing employees to perform their best work possible in their current roles, while also supporting those who want to advance or train for other positions. 

• • Certification opportunities

• • Tuition reimbursement

• • E-learning options

• • Mentorship programs

• • Job cross-training

• • Team-wide technical training

• • Personalized learning pathways

 

Professional development is already a growing trend in skilled trades. Among respondents to ACG’s recent survey, 76% reported having adopted at least one strategy to upskill their employees. These included enhanced performance review processes, training program partnerships, and career pathing for team members. To stay competitive, companies seeking to hire top talent will need to step up their efforts.

Hire Great Employees and Skilled Tradespeople

Training opportunities, competitive pay, and a great workplace culture are essential offerings in today’s competitive labor market. However, when you need to hire skilled tradespeople, those changes may not yield results quickly enough.

 

Superior Skilled Trades connects you with qualified candidates right away. No need to wade through poor-fit resumes or reserve resources for on-the-job training. We match you with skilled professionals who have completed our rigorous vetting process and meet the strictest standards for skill, experience, and professionalism. When you need to hire new employees — direct, temporary, or contract — Superior Skilled Trades makes the process easy. Contact us today to discover how we can fill your roles, allowing you to focus on running your business.