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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. AIdriven 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AI-powered employee listening Traditional employee engagement surveys are outdated by the time leaders act on them. AIdriven 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

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