AI may be able to support the labor crisis (but not in the way you think). By Lewis North and Ian Barrow   

The US construction industry is at a breaking point. In 2025 alone, the sector must attract an estimated 439,000 additional workers just to meet demand (ABC.org). Yet, despite wage hikes, bonuses, and benefits, companies are still struggling to find and retain skilled workers.  

It’s a crisis with no easy fix. Nearly 80 percent of contractors raised pay rates last year, and average hourly wages in construction have risen 4.5 percent to $36.23 per hour. Yet despite these efforts, 88 percent of construction firms still report difficulty finding qualified workers.  

But the problem is bigger than money. An aging workforce, fewer young people entering the trades, and the physically demanding nature of construction work are all contributing to the shortfall. Meanwhile, immigration policy changes are impacting a labor pool that the industry has long relied on.  

The solution? It’s not just about higher wages—it’s about smarter workforce management. And AI may hold the key. AI-driven workforce analytics, like WorkBuzz’s People Science AI, is beginning to change the game. By leveraging artificial intelligence to analyze workforce data, predict trends, and provide insights into employee engagement and retention, construction firms can get ahead of the crisis instead of reacting to it.  

How AI is reshaping workforce strategy  

AI-powered employee listening  

Traditional employee engagement surveys are outdated by the time leaders act on them. AI-driven tools analyze real-time feedback from surveys, worksite communication channels, and even project data to detect engagement trends. If workers on a site are disengaging, AI can flag it before it turns into an exodus.   

Predictive analytics for retention  

AI can analyze hiring and turnover patterns to predict which employees might be at risk of leaving. By identifying early warning signs—such as declining engagement scores or workload imbalances—leaders can intervene before workers quit.   

Smarter workforce planning  

One of the key applications of AI in construction is project planning and management. AI algorithms can

analyze vast amounts of data from past projects to predict potential delays, identify risks, and recommend efficient scheduling. This enables better predictions of required workforce levels, ensuring that companies are neither understaffed nor overstaffed.  

AI-driven workforce models can analyze regional labor trends, skill gaps, and economic forecasts to help firms hire more strategically rather than simply throwing money at the problem. With ongoing labor shortages, companies need to plan ahead rather than react to immediate gaps.   

Personalized career growth and training  

In 2025, a lack of career growth is one of the top reasons employees leave. AI-powered learning platforms can create personalized development paths, recommending training based on a worker’s skills and career aspirations. When employees see a future with their company, they’re far less likely to leave.   

AI-powered onboarding and exit insights  

With up to 20 percent of new hires leaving within 45 days, onboarding is a critical moment for retention. AI-driven onboarding surveys can highlight pain points before they push new hires away, while AI-powered exit interviews can identify systemic issues contributing to turnover.   

Behavioral analysis   

It’s often said that people don’t leave jobs, they leave managers. Understanding leaders is therefore key and organizations need to take a deep dive into behavioral analysis, supported by AI, to pinpoint what makes a high-performing leader. By analyzing leadership behaviors and their impact on performance, attrition, and even workplace safety, organizations can develop stronger managers and reduce workforce instability. Understanding these insights enables senior leaders to drive meaningful change and create a workplace culture where employees thrive.  

AI won’t replace leadership – but it can make it smarter  

There’s an understandable fear that AI will replace human leadership, but the reality is the opposite. AI doesn’t replace decision-makers-it empowers them.  

By providing real-time insights, AI helps leaders make data-driven decisions that align with what employees need. It shifts organizations from reactive, short-term policies (like sudden pay raises) to proactive, strategic improvements that make companies places where workers want to stay—not just places that pay well.  

A culture shift is the only way forward  

The construction industry has long relied on tradition, but the workforce of today, and certainly the workforce of tomorrow, expect more. Companies that rely solely on wage increases will find themselves stuck in a cycle of high attrition and continuous hiring struggles.  

Those that embrace AI-driven workforce insights will be the ones that build cultures that attract and retain employees long-term. The future of construction isn’t just about offering the highest wage, it’s about understanding what truly matters to workers and taking action before it’s too late. And that’s the difference between a company that struggles and one that thrives.   

www.workbuzz.com    

Lewis North is CTO and Ian Barrow is Client Services Director at WorkBuzz. WorkBuzz offers flexible, simple and actionable employee engagement surveys, helping organizations to reach and engage all their employees – wherever they are, and whatever they do. Get real-time feedback from your people, track employee engagement and experience, and make more informed, data-driven people decisions. Create a culture where every voice matters, and every person can reach their full potential.