Story perspectives

Construction Sector Struggles Amid Labor Shortages and Rising Costs

6/11/2025

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Summary

Story summary

Labor shortages in construction peaked at 5.3% in May 2022, improving to an average of 3.0% by early 2025.
Home construction fell 19% from its March 2025 peak, impacted by rising interest rates.
Data center construction surged 265% over five years, boosting nonresidential growth amid economic challenges.
Warehouse construction decreased by 27% after a high in April 2023, with tariffs raising material costs by 9.7% in early 2025.
Overall construction starts declined by 9%, with private nonresidential investment down, though public funding aided some sectors.

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Story summary

Labor shortages in construction peaked at 5.3% in May 2022, improving to an average of 3.0% by early 2025.
Home construction fell 19% from its March 2025 peak, impacted by rising interest rates.
Data center construction surged 265% over five years, boosting nonresidential growth amid economic challenges.
Warehouse construction decreased by 27% after a high in April 2023, with tariffs raising material costs by 9.7% in early 2025.
Overall construction starts declined by 9%, with private nonresidential investment down, though public funding aided some sectors.