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Report: Government Shutdown Could Cost Millions in Construction Staffing

The findings show that the current halt could cost millions of dollars in staffing losses within the construction and property sectors.

construction workers with dollar symbol — Building Enclosure

Hays Americas, a leading recruitment firm specializing in professional staffing, has analyzed the direct and indirect impacts of U.S. government shutdowns on the world of work. The findings show that the current halt could cost millions of dollars in staffing losses within the construction and property sectors. Government shutdowns, whether brief or prolonged, can have significant consequences for hiring, project timelines, and economic sentiment.

Historical Impact:

A review of the three most recent government shutdowns, based on Bureau of Labor Statistics data, reveals:

2013 Shutdown (16 days): Disrupted federal survey operations, delaying employment data collection and affecting labor market visibility.
2018/2019 Shutdown (35 days): Caused widespread delays in permitting and project approvals, particularly in construction.
2023 Shutdown: Halted systems like E-Verify, impacting onboarding processes and hiring decisions across sectors.

“While government shutdowns may seem like political events, their impact on staffing, especially in construction, is very real,” said Dave Brown, CEO, Hays Americas. “Delays in permitting, onboarding, and project funding can stall hiring and cost the industry millions.”

Direct Impacts:

Permitting Delays: Construction projects requiring government-issued permits are often paused, delaying hiring and execution.
Contractor Onboarding: Shutdowns of systems like E-Verify can slow or halt onboarding, particularly for international talent.
Federal Contract Work: Recruiting firms working with government contractors face immediate disruptions if projects are deemed non-essential or lack full funding.

Indirect Impacts:

Economic Uncertainty: Shutdowns create hesitation among private sector employers, delaying hiring and investment decisions.
Sentiment & Spending: Regions with high government employment often experience reduced consumer spending, indirectly affecting construction demand and staffing needs.

Construction remains a vital sector in the U.S. economy, employing over 8.3 million workers, with residential construction accounting for nearly 3.3 million of those jobs. Delays in hiring and project starts due to shutdowns can cost millions in lost productivity and wages.

For more information, visit hays.com.