The Workforce Squeeze: Why Gen X and Millennials Hold the Keys to Construction’s Future

When people talk about the labour crisis in construction, the spotlight often lands on Gen Z. Will they join? Will they stay? But while attention is focused on the newest generation, the real pressure point sits in the middle. Gen X and Millennials make up the backbone of the workforce in both the UK and US, yet many are leaving, plateauing, or choosing opportunities in other sectors. In this article, Jamie explores why these groups matter most, the risks of losing them, and how contractors can adapt hiring and retention strategies to keep the industry’s backbone strong.

Why the Middle Matters

Every conversation about the future of construction seems to focus on the extremes. On one end, the wave of retirements from Baby Boomers exiting the industry. On the other, the challenge of bringing Gen Z into apprenticeships and early trades careers.

But between those two groups sits the segment that actually holds projects together day to day: Gen X and Millennials. These are the tradespeople, foremen, site supervisors, estimators, and junior project managers who translate strategy into delivery. They are old enough to know how to get the job done but still young enough to be in the thick of long hours, demanding schedules, and on-site leadership.

In the UK, the average age of a construction worker is 43 (CITB). In the US, it is 42.5 (BLS). These averages show that construction is not powered by 20-year-olds fresh from training but by workers in their thirties, forties, and early fifties. This group is central to delivering projects, mentoring new entrants, and ensuring the transfer of knowledge before the retirement wave crests.

Here is the challenge. The construction workforce is ageing, but the middle tier is thinning. Baby Boomers are leaving, Gen Z is trickling in, and Gen X and Millennials are being squeezed in the middle.

According to a 2024 workforce analysis by Associated Builders and Contractors, the US construction industry needs to attract more than 500,000 additional workers on top of normal hiring just to meet demand this year (ABC). Meanwhile in the UK, the Construction Industry Training Board forecasts that an additional 225,000 workers will be needed by 2027 to meet pipeline demand. Without a stable middle tier, neither country has the leadership to train, supervise, and deliver at the scale required.



This is not just a numbers game. The squeeze is about capability. You can hire more Gen Z apprentices, but without supervisors and mentors in place, they will not stay. And you cannot rely on senior executives alone to run projects. The middle tier is where projects live or die.

Why They Are Leaving

Gen X and Millennials are leaving construction at alarming rates, and not just because of pay.

• Burnout: Long hours, weekend work, and relentless schedules are driving mid-career workers out of the industry. Many who have families in their thirties and forties are walking away from roles that leave them no balance.
• Lack of progression: Too many workers feel stuck. They are skilled trades or junior managers with no clear ladder into leadership. Without transparent career pathways, many leave for industries that offer progression.
• Cross-industry competition: Energy, logistics, and advanced manufacturing are actively recruiting skilled construction trades, often with more stable schedules and competitive pay. The renewable energy boom in the US and the UK’s infrastructure pipeline are pulling workers out of traditional building roles.
• Cultural fatigue: The “tough it out” mentality has worn thin. Younger Gen X and older Millennials expect more flexibility, respect, and recognition than construction has historically provided.



The result is a widening gap. Just as these workers should be stepping into mentoring and leadership roles, many are instead stepping out.

Case Studies: What We Are Seeing

In the U.S., there is clear momentum as clean energy construction roles expand, drawing experienced trades into emerging energy infrastructure builds. According to the 2024 USEER, construction employment within clean energy grew by 4.5% in 2023, nearly double the 2.3% growth rate of overall construction employment. This represents a notable shift in labor demand, particularly in roles tied to new facilities for solar panels, battery storage, and grid modernization.

This shift isn’t just about project types, it’s about roles. Electricians, foremen, and site supervisors are finding renewable energy projects appealing due to clear structure, stronger timelines, and unionized stability. As a result, sectors like data centres and healthcare construction are finding their experienced middle-tier labour moving towards green energy builds at a faster pace.

Meanwhile, recent job market analysis points to increasing turnover in energy and utility roles, driven partly by competition for skilled trade experience in renewable energy. The Center for Energy Workforce Development reports that non-retirement turnover across energy utilities hit about 7.2% in recent surveys, one of the highest levels in their data, highlighting how mid-level workers are either changing roles or moving industries altogether. (Astute People)

These trends suggest that mid-career workers, with both experience and ambition, are gravitating toward sectors that offer clearer stability, progression, and promise.

What Contractors Can Do

The firms holding onto Gen X and Millennial talent are making different choices:

• Career progression pathways: Workers need to see the next step. Whether it is site leadership, digital construction roles, or project management, clear ladders keep people motivated.
• Upskilling programmes: Training in BIM, sustainability standards, digital tools, and leadership skills gives workers confidence they are growing, not stagnating.
• Flexible scheduling: Offering more predictable rotas and considering family commitments helps retain workers who are otherwise burnt out.
• Recognition and respect: Retention is not just about money. Workers who feel respected, consulted, and recognised are more likely to stay.
• Mentorship incentives: Contractors can formalise mentoring, rewarding mid-level leaders for investing in apprentices and younger trades.

Research shows this works. A 2023 survey by ClearCompany found that 86 percent of workers would leave for better growth opportunities, while organisations offering structured career development report 34 percent higher retention compared to those without clear pathways (Aspire Institute).

Similarly, a 2025 report by BerryDunn highlights that retention in construction improves significantly when firms invest in structured learning, provide recognition, and promote advancement (BerryDunn).

The message is clear: workers stay where they see a future.

Final Take

The future of construction is not just about how many apprentices join or how many Boomers retire. It is about whether Gen X and Millennials stay, grow, and lead.

These groups are the supervisors, foremen, site managers, and project leads who hold the industry together. They are the mentors Gen Z needs, the knowledge transfer pipeline, and the delivery engine of every project.

Losing them is more than a labour shortage. It is a leadership shortage.



For contractors, the path forward is clear. Invest in career ladders, upskilling, flexibility, and respect. Build cultures where workers feel they can stay and grow. Because in 2025 and beyond, the firms that keep their middle tier strong will not only survive the workforce squeeze. They will outpace the competition.