Positive Growth
If you live in the Valley, you’ve seen it: cranes on the skyline, new neighborhoods taking shape, and a sense of energy everywhere. Phoenix is booming! But behind this exciting growth, we’re facing a critical challenge that’s putting a brake on our progress: a serious shortage of skilled construction workers.
It’s a situation that requires a closer look at the data and the unique factors at play right here in Arizona.
The Story in the Numbers
The latest industry data confirms what many of us have been seeing on the ground. The Associated General Contractors of Arizona (AZAGC) released a 2025 survey that paints a clear picture:
- An overwhelming 92% of our construction firms are struggling to hire skilled labor.
- This isn’t just a hiring headache; 45% of these companies report that project delays are a direct result of not having enough people.
When you consider that immigrants make up a vital 30% of the construction workforce nationally, it’s clear that any policy affecting that labor pool will have a major impact. In Arizona, our state laws play a significant role in this story.
How Arizona’s Laws Shape Our Workforce
You can’t fully understand the labor situation here without looking at two key pieces of state legislation:
- The Legal Arizona Workers Act (LAWA): This law has been in effect since 2007, mandating that every employer use the federal E-Verify system to confirm a new hire’s eligibility to work. For construction, an industry that has long utilized immigrant labor, this created a strict compliance framework that permanently altered the labor supply.
- Proposition 314 (2024): This is a more recent and significant law. It gives state and local police the power to arrest and deport people for entering the country outside a legal port of entry. The effect of a law like this is that it creates a climate of risk, which can cause workers and their families to leave the state, further shrinking the available pool of labor.
The Real-World Consequences
So, what does all this mean for the average person? It’s more than just construction projects taking longer. The ripple effects are significant:
- When it costs more and takes longer to build, housing prices go up for everyone.
- The new roads and schools our communities need get delayed.
- On a larger scale, it can make companies think twice about making huge investments here if they’re not confident we have the workforce to build their facilities.
A Path Forward
Solving this requires a smart, two-pronged approach.
First, we have to rebuild our domestic talent pipeline. It’s time to change the conversation around the skilled trades, because the career path looks very different than it did a generation ago. For young people, the qualifications to get started are relatively straightforward—often just a high school diploma or GED to enter an apprenticeship program where you get paid to learn on the job.
This “earn while you learn” model stands in stark contrast to the traditional four-year college route. Instead of taking on debt, new apprentices start earning a good wage immediately. As they gain experience, their income grows quickly. It’s a powerful financial head start. A skilled trades professional can reach a six-figure income relatively early in their career, all without the massive burden of college loan debt. Partnerships between the state and private companies are the most effective way to promote these incredible opportunities and scale up training programs.
Second, our state leaders should advocate for a more sensible federal guest-worker program. While respecting federal law, we can push for a system that is more responsive to the real-time needs of our economy. A legal, stable, and reliable workforce is in everyone’s best interest.
Tackling this challenge is essential for keeping Arizona on its incredible growth trajectory.
