Hays Report: Shutdown Delays Could Cost Construction Millions in Lost Work Hours

TAMPA, FL — Hays Americas, a recruitment firm specializing in professional staffing, has released new analysis showing that US government shutdowns can lead to millions of dollars in staffing losses across the construction and property sectors. The study highlights how work stoppages, from permitting delays to reduced hiring confidence, can ripple through projects nationwide.

Shutdowns Ripple Through Construction Hiring

While political in nature, shutdowns have clear operational impacts on the trades. Permitting delays, paused federal contracts, and halted onboarding systems like E-Verify all slow construction activity and hiring. These disruptions hit both general contractors and subcontractors who rely on consistent project flow.

“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.”

What History Shows

A look back at recent shutdowns underscores the pattern of disruption:

• 2013 (16 days): Federal survey operations were suspended, delaying employment data and affecting visibility into the labor market.

• 2018–2019 (35 days): The longest shutdown on record caused extensive permitting and approval delays, particularly in construction.

• 2023: Systems like E-Verify were paused, complicating onboarding and hiring across multiple sectors.

Key Direct Impacts

• Permitting Delays: Federal permitting slowdowns often halt project starts and workforce mobilization.

• Contractor Onboarding: Shutdowns of E-Verify and related systems can suspend hiring, especially for international or subcontracted labor.

• Federal Contract Work: Recruiting firms tied to non-essential government contracts experience immediate interruptions.

Broader Economic Fallout

Beyond direct disruptions, the study found that shutdowns shake confidence across the private sector.

• Economic Uncertainty: Employers delay hiring and investments amid political gridlock.

• Reduced Spending: Regions with heavy federal employment see drops in consumer spending, indirectly dampening construction demand.

The construction industry employs more than 8.3 million Americans, including 3.3 million in residential construction. With shutdowns freezing permitting and funding pipelines, even short disruptions can translate to major losses in productivity, wages, and skilled labor deployment.

For more information, visit hays.com.

Note: this release was rewritten with help from generative AI.