The construction industry is grappling with a severe challenge: a staggering 92% of firms struggle to find qualified workers, leading to significant project delays across the country. This isn’t just an industry problem—it’s a community problem, impacting everything from new homes to critical infrastructure. Simultaneously, the industry is battling the persistent issue of unqualified and unlicensed contractors, threatening both consumer safety and professional standards.
The Qualified Labor Shortage
The root causes of the widespread labor gap among qualified workers are multifaceted. A recent survey by the Associated General Contractors of America highlights several key issues:
• Skills Gap: Over half of construction firms report that available candidates lack the essential skills and licenses needed to get the job done safely and effectively.
• Lack of Investment: Federal funding for construction education and training programs has fallen short, failing to build a robust pipeline of skilled workers for the future.
• Immigration Hurdles: Nearly a third of construction firms have been impacted by immigration enforcement efforts, cutting off a vital source of labor. These shortages mean that 88% of firms have openings for craft workers and four-fifths have openings for salaried positions. The demand for skilled labor is immense, but the workforce simply isn’t there.
Confronting Unlicensed Activity
While the industry strives to fill positions with qualified workers, it also contends with an ongoing issue of unqualified and unlicensed contractors operating in the field. To safeguard consumers and uphold industry standards, the National Association of State Contractors Licensing Agencies (NASCLA) recently spearheaded a nationwide enforcement effort to combat this unlicensed activity.
This coordinated campaign was conducted across 16 states with 18 regulatory agencies and NASCLA members:
• Alabama
• Arizona
• Arkansas
• California
• Connecticut
• Florida
• Michigan
• Mississippi
• Nevada
• North Carolina
• Oregon
• Texas
• Utah
• Washington
It involved nearly 3,000 jobsite visits and over 1,000 compliance checks, uncovering more than 900 cases of unlicensed contracting. This effort, led by state government agencies between October 20-24, 2025, resulted in 378 administrative penalties, 118 criminal citations, and 600 ongoing investigations. For example, the Alabama Home Builders Licensure Board visited 160 residential construction job sites in Jefferson and Shelby counties, issuing stop work orders to four unlicensed builders and continuing investigations into potential unlicensed activity at 13 additional sites. These actions highlight the critical importance of ensuring contractors are properly licensed, insured, and accountable, protecting consumers from substandard work and fostering a fair playing field for legitimate professionals. contractors even for smaller projects.
The Arkansas Contractors Licensing Board (ACLB) also reported significant activity. Within a recent two-week period, the ACLB received 16 homeowner complaints, ranging from poor workmanship by licensed contractors to the discovery of unlicensed operations. This led to 27 new cases opened for investigation. Furthermore, 25 instances of contracting activity were found to be performed by unlicensed individuals. Consequently, the ACLB’s Residential Committee and Commercial Board ordered discipline in 14 cases, with penalties ranging from monetary fines to the revocation of existing contractor licenses.
These widespread efforts underscore the construction industry’s commitment to rooting out unlicensed activity. By actively enforcing regulations and penalizing those operating outside the law, agencies like NASCLA are safeguarding consumers, upholding industry standards, and ensuring a fair market for legitimate, qualified professionals.
Compliance and Professionalism
Contractors, the message is clear: compliance isn’t just a suggestion—it’s essential. With labor shortages and increased enforcement, now is the time to secure and maintain every license and certification. Don’t just avoid penalties; stand out, get hired for more jobs, and fill the critical gap in qualified workers. Prioritize licensure to build trust, protect public safety, and solidify your professional standing. Your future depends on it.
References:
National Association of State Contractors Licensing Agencies (NASCLA). (2025). NASCLA press release. Retrieved from https://cdn.ymaws.com/www.nascla.org/resource/resmgr/ enforcement_effort/2025/nascla_press_release__2025_n.pdf
Associated General Contractors of America (AGC). (2025, August 28). Construction workforce shortages are leading cause of project delays: Immigration enforcement affects. Retrieved from https://www.agc.org/news/2025/08/28/construction-workforce-shortages-are-leading-cause-projectdelays-immigration-enforcement-affects
National Association of State Contractors Licensing Agencies (NASCLA). (2024). Arkansas NASCLA report. Retrieved from https://cdn.ymaws.com/www.nascla.org/resource/resmgr/ enforcement_effort/2024/arkansas_nascla_2024.pdf
National Association of State Contractors Licensing Agencies (NASCLA). (2024). Alabama home builders NASCLA report. Retrieved from https://cdn.ymaws.com/www.nascla.org/resource/ resmgr/enforcement_effort/2024/al_home_nascla_2024.pdf
