Hiring & Retention·For shops still finding their footing
Published August 18, 2026
Where to Find Good Workers as a Small Contractor
The talent is out there. Most small shops are fishing in the wrong pond.
Read This First
Construction employers had roughly 305,000 open jobs on the last day of June 2026, up 81,000 from a year earlier.[1] If you're a two- or three-person shop struggling to staff jobs, you are not imagining the squeeze. But the problem for a small contractor is rarely that no workers exist. It's that you're competing for the same handful of already-employed guys everyone else is chasing, instead of going where new workers actually enter the trade.
Where the Workers Actually Come From
The pipeline of new people is real and it's growing. The share of young adults interested in a construction trades career doubled from 3% a decade ago to 6% today. Among those interested, the top draws are good pay, named by 73%, and the chance to learn a useful skill, named by 65%.[2] That's your recruiting pitch, already written for you.
Half of payroll construction workers earn more than $60,320, and the top quarter make at least $81,510.[2] Average hourly earnings for construction production and nonsupervisory workers reached $39.24 in July 2026, up 5.2% year-over-year, outpacing the 3.2% wage growth for production workers economy-wide.[8] If you can say a real number out loud, you are more attractive than a shop that just says "competitive pay."
Trade schools are the most direct pond, and the one small shops ignore most. Trade schools emphasize practical experience, giving graduates a foundation they can bring into an entry-level job.[4] Apprenticeship programs pair classroom learning with on-the-job training, which means you get someone learning your way of doing things while they earn.[4] There's even backed-up demand you can catch: many high school students report being waitlisted for the training programs they want.[4] Those are motivated people with nowhere to go. A standing relationship with one local school or program means you're more likely to hear about good candidates before you're scrambling to find them.
Recruit Where Big Contractors Aren't Looking
Big contractors compete for the same small pool of already-employed workers. Small shops win by going where that competition doesn't reach: trade schools, apprenticeship programs, community colleges, high-school CTE programs, employee referrals, and veterans leaving the military. Veterans are the recruiting channel most small contractors never touch, and it's built for exactly this problem. AGC of America joined the national Hiring Our Heroes program as part of an industry push to add 100,000 veterans over five years.[6] The Build Your Future Credentialing Portal converts training a service member already got in the military into NCCER credentials, so you're not starting from zero.[6] Helmets to Hardhats connects people leaving the Armed Forces directly with construction training and jobs.[6] These are disciplined, trainable workers, and the programs that route them to employers are free to use.
Why Speed Is Half the Fight
Money isn't the only reason good workers slip away from small shops. Speed matters, too. It's that big outfits move faster and you're slow to respond. Construction hires ran 342,000 in July 2025, and fewer workers quit their jobs that month than in any month over the prior nine years. That's a tight-labor signal that has since eased somewhat.[7] People who have a decent job are staying put, so the ones who are actually available won't sit in your inbox for a week. Indeed reported that sponsored job posts marked Urgently Hiring were associated with hires five days faster than comparable non-sponsored posts, based on its own Q2 2024 US median across all industries.[4] Five days is the difference between landing a candidate and watching a competitor land him.
Make the First Call Easy
A good worker shouldn't have to finish a long application before anyone from your shop talks to them. Put the pay range, the type of work, the location, the schedule, and the minimum experience in the posting itself, not buried in a follow-up email. Give people a phone number or a way to text you directly, and answer it fast. A candidate who hears back the same day is still on the market. A candidate who hears back next week has already taken another job.
The first call doesn't need to be long. Five minutes is enough to cover what they've done, what they're looking for, when they can start, what they're making now, and what would get them to move. That's enough to know whether a second call is worth scheduling.
Don't build an HR department. Build a fast hiring process.
What to Change
Stop treating hiring as something you do only when a crew member quits. The industry needs roughly 723,000 new construction workers a year just to keep up,[3] with ABC projecting about 349,000 net new workers needed in 2026 and 456,000 in 2027.[5] That demand isn't easing, so build a standing pipeline now. Pick one local trade school or apprenticeship program and introduce yourself before you need anyone. Register with one veterans channel, Helmets to Hardhats or Hiring Our Heroes, so trained candidates get routed to you. When a lead does come in, respond same-day and lead with a real wage figure, not a vague one. And if you're genuinely short-handed, paying to increase the visibility of the opening may be cheaper than leaving a job understaffed.
Bottom Line
The workers exist, and more are entering the trades every year. As a small contractor, your edge isn't outbidding the big firms. It's building relationships with the schools, programs, and veteran channels feeding new people in, and moving faster than anyone else once someone's available.
Sources
- Associated Builders and Contractors: Analysis of June 2026 JOLTS construction job openings data (via HVAC/P coverage)
- NAHB: Survey on young adult interest in the construction trades and trade pay
- NAHB: HBI Fall 2024 construction labor report on workforce size and required annual hiring (723,000/year figure reaffirmed in HBI's Fall 2025 report)
- Indeed: Strategies to recruit and retain skilled tradespeople, including sponsored-post hiring speed data
- ABC Carolinas: Construction industry labor shortage projections for 2026 and 2027
- Associated General Contractors of America: Veterans recruiting programs and credentialing resources
- Engineering News-Record: BLS construction hires and quits data for July 2025 (JOLTS)
- AGC of America analysis of BLS data (via trade-press coverage): construction-specific production/nonsupervisory average hourly earnings, July 2026
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