AGC Report Details High Wage Trends and Labor Shortages in Construction

1 report, 1 independent Updated Sep 23

AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

The Associated General Contractors of America released its Labor 3Q 2026 Cost Report, noting that construction firms continue to pay historically high wages due to ongoing labor shortages. Nationally, both union and non-union workers are seeing pay increases average above 4%. The report also found that contractors are struggling to fill openings amid surging demand for data center construction and immigration restrictions.

From enr.com

Why it matters

Some supportBrind's analysis of the reports

The report indicates that the construction industry added 120,000 jobs since August 2025, outpacing total nonfarm payroll employment gains. Union trades saw first-year settlements average 4.9% in the first half of 2026, with trends expected to hold through 2027.

From enr.com

Who's involved

AGCOrganization that collected and reported regional wage trends for the construction industry
IdahoRegion whose economic trends are relevant to the report
NortheastRegion mentioned in the report regarding regional wage increases

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

NortheastSpeculative
The region might see increased labor costs due to having the highest average first-year wage increases at 5.8% in the first half of 2026.
AlaskaSpeculative
The region might experience lower labor costs, with average first-year wage increases documented at 4.3% in the first half of 2026.
MetaSpeculative
Meta might face increased construction expenses in Idaho due to rising national labor costs.

Coverage

Newest first; wire copies grouped

Sep 23enr.com