News Summary
Alabama’s construction industry is struggling with workforce challenges due to declining job growth and restrictive immigration policies. With 34% of workers being foreign-born, labor shortages have intensified. A recent survey revealed that many construction firms are facing difficulties finding qualified workers, with some reports of immigration enforcement impacting both undocumented and legal workers. The sector is also experiencing project delays, prompting initiatives like a hiring event to boost job opportunities in commercial construction. As the labor crisis continues, the state of the construction industry remains concerning.
Alabama’s construction sector is grappling with significant workforce challenges as job growth declines and restrictive immigration policies take their toll. This comes at a time when the U.S. labor market has shown signs of slowdown, adding only 22,000 new jobs in August 2025, with the first job losses reported in June since December 2020.
The construction industry is among the sectors experiencing job losses, alongside manufacturing and mining. In Alabama, about 34% of construction workers are foreign-born, making the industry’s reliance on immigrant labor particularly critical. Current anti-immigration policies have worsened existing labor shortages, creating substantial difficulties for businesses within the sector.
A survey conducted by the Associated Contractors of America along with the National Center for Construction, Education and Research revealed that nearly one-third of construction firms have faced direct or indirect impacts from immigration policies over the past six months. Alarmingly, 92% of construction firms surveyed reported difficulties in finding qualified workers. Additionally, about 5% of respondents noted that their construction sites had experienced raids by immigration agents, while 10% had workers leave due to fears surrounding potential immigration enforcement actions. This climate of fear affects both undocumented workers and those with legal status, leading to broader implications for the workforce.
The effects are felt across the industry, with around 20% of companies reporting that subcontractors have lost employees due to these immigration actions. Alabama ranks among states such as Georgia, Virginia, Nebraska, and South Carolina that are severely impacted by labor shortages linked to immigration policies. The Federal Reserve’s Beige Book has documented a range of instances where such actions have disrupted labor markets, particularly in the construction sector across all twelve districts.
According to the New York Federal Reserve, the reduction in immigrant workers has led to delays in construction projects. As a result, some employers have started adopting four-day workweeks in an effort to retain existing employees amid the labor crisis. Interestingly, while construction job openings rose from 242,000 in June to 306,000 in July 2025, overall job vacancies in the country have been declining. This trend highlights the unique struggles of the construction industry amidst a broader economic landscape.
Experts have noted that increased bid levels for construction are more influenced by immigration policy repercussions than by heightened demand for workers. A survey indicated that 78% of firms had at least one project delayed due to insufficient workforce availability, with 45% of respondents attributing these delays directly to workforce shortages.
Amid these challenges, an upcoming hiring event on June 17 is set to create pathways for job seekers interested in opportunities available within Alabama’s commercial construction sector. This initiative aims to address the rising job demand during a challenging time for both workers and employers. Additionally, the Novelis aluminum plant in North Baldwin County is preparing to significantly expand its workforce, hosting a ‘three-day hiring blitz’ for prospective candidates in response to the growing need for workers in construction roles.
As Alabama’s construction sector continues to navigate the dual challenges of declining job growth and restrictive immigration policies, the effects on both the industry and the broader economy remain concerning.
Deeper Dive: News & Info About This Topic
- El PaÃs: Labor Shortages in Construction
- Wikipedia: Construction Industry
- Reuters: Construction Project Delays
- Google Search: Construction Industry Challenges
- Huntsville Business Journal: Hiring Event in Alabama
- Google Scholar: Labor Shortages in Construction
- Montgomery Advertiser: Education Program in Construction
- Encyclopedia Britannica: Construction Workforce
- Alabama News Center: Job Creation in Birmingham
- Google News: Alabama Construction Jobs
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
