The construction industry is home to numerous industry challenges. Labor shortages run rampant, but there’s another big one: talent retention. ADP Research recently released new data revealing the details around employee turnover in the construction industry. They’ve uncovered that summer turnover hovers around 3.69%, which is the fourth highest of all industries studied. Here’s a deeper look into turnover numbers and why companies are feeling the pressure to retain employees now more than ever.
What the numbers are saying
According to peopleleak.com, construction turnover unsurprisingly peaked in 2020 following the start of the COVID-19 pandemic at 68.5%. In 2021 and 2022, the industry experienced turnover rates of 56.9% and 54%, respectively, which were still higher than the national averages of 47.2% and 41%.
The Bureau of Labor Statistics reported that in December 2024, the turnover rate for that month dropped to 3.4%, and in January 2025, crept up to 4% but included the total separations rate.
Some of the main reasons workers have been motivated to stay include technology upgrades, such as the increased use of AI and robotics, as well as improved work culture and conditions. While both changes have increased productivity and job fulfillment, there are still persistent areas where companies routinely lose workers.
Why construction retention is complex
Turnover in the construction industry ebbs and flows for various reasons. Some factors are also applicable to other industries, while others are exclusive to the construction sector. Here are seven factors that influence construction turnover rates:
- Onboarding challenges: Construction is fast-paced, meaning corners are often cut with onboarding. This leaves new employees feeling lost and unsupported.
- Short-term and per-project work: Many contract-based jobs cause workers to feel like they lack job security. Many opt to find stable work elsewhere.
- Age gaps and generational divides: Older generations who don’t value collaboration, technology adoption, and work-life balance might cause a rift with new young workers.
- Lack of recognition: Workers who feel unappreciated and taken advantage of might seek alternate employment options that they find more rewarding.
- Limited growth and learning opportunities: If workers aren’t given a clear path to learn new skills or grow into management, they might find their work stagnant and leave for something with a stronger career trajectory.
- Leadership and management: Many construction workers find management “old-school”, toxic, and too hierarchical to want to stay long-term.
- Strain on mental health: The construction industry has the highest suicide rate of any, and many workers can’t cope with the long hours, safety concerns, diversity disparities, and overall gruelling culture still present on many job sites. Lack of psychological safety on site drives talent away year after year.
By addressing these factors where possible, construction teams may find that these newer, improved turnover rates are here to stay. And that, combined with efforts to fill the labor shortage, might mean a significant turnaround for the industry’s workforce overall.
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