Outline:
The Construction Boom and the Labor Shortage Crisis
The world is on the cusp of a generation-defining construction boom, but the U.S. may not have enough workers to make it happen, according to a new report from BlackRock. This development could become a critical fault line in the global economy, with soaring demand for some workers and shrinking opportunities for others. The report highlights that this could result in widening financial gaps in the coming years.
A Historic Infrastructure Buildout
The world is entering what could be the greatest period of construction in human history. According to the report, as much as $85 trillion in new infrastructure will be needed over the next 15 years. This massive undertaking is being fueled by the AI buildout, a fresh push to bring manufacturing facilities onshore, and the need to upgrade aging infrastructure.
Sandra Lawson, BlackRock managing director of corporate affairs, writes in the new report: “The world is entering what could be the greatest period of construction in human history.” However, she also warns that labor could be a potential constraint if the world cannot train workers quickly enough.
The Impact on the Workforce
AI will jolt the white-collar workforce. The scale of disruption is still unclear, but early signs of it are underway. Some white-collar employers are rethinking their hiring needs as they adopt AI. At the same time, blue-collar trades will be more in demand, in part to build the hard assets necessary for the AI era.
Skilled Trades Are in High Demand
According to the report, "The infrastructure buildout is creating new demand for jobs in skilled trades, like electricians, HVAC technicians, plumbers and more." These are the people with skills and training to design, construct, operate, and maintain complex physical assets.
On average, infrastructure-related jobs are projected to grow 5% in the next 10 years, a growth rate that outpaces the estimated 3% nationwide average over the same period, BlackRock says. However, even that estimate is probably understated. It was based on Bureau of Labor Statistics data produced two years ago.
The growth rate is likely higher now, "given how quickly demand for AI-related infrastructure has accelerated since these estimates were produced in 2024," BlackRock says.
A Looming Labor Shortage
Even as demand surges, the labor supply may fall short. A looming retirement wave is coming as demand rises for jobs disproportionately filled by older workers. Roughly 70% of supervisors in the electrical industry are baby boomers, meaning the field’s most experienced leaders are nearing retirement, leaving fewer available to train the next generation.
Nearly one-fifth of the construction workforce is over age 55, while the median worker is 42 years old. The additional complexity of AI-related infrastructure makes highly skilled and experienced instructors all the more valuable. The older skew of the workforce makes the timing challenge all the more acute.
Current Challenges and Future Outlook
In some fields, shortages are already here. Construction trade groups say that immigration crackdowns have resulted in worker shortages and project delays. U.S. Immigration and Customs Enforcement targeted construction workers on their way to a Meta data center in Louisiana, per multiple reports.
The prospect of booming wage growth could help entice younger workers to these positions. "Coming labor shortages, driven by rising demand and retirements, will continue to put upward pressure on wages," the report says.
What Needs to Be Done
BlackRock says that companies and governments will need to train the workforce necessary for the AI infrastructure boom. However, lawmakers have largely been mum on the issue. Big Tech’s efforts to upskill workers quickly are nascent and often tied to offsetting their own impact on communities disrupted by their energy, water, and space-hogging data centers.
Microsoft recently announced that it would work with the North America’s Building Trades Unions to train electricians on new AI skills.