Average Turnover Rate in Construction Industry: 2025 Research

Construction Industry Faces Critical Workforce Retention Challenges

The construction industry continues to experience some of the highest workforce turnover rates across all sectors, with average annual rates reaching 68.2% in 2025. Skilled trades positions have a turnover rate of 73.1%, while administrative and project management roles have a relatively lower turnover rate of 41.3%.

Construction companies, project managers, and HR directors need reliable turnover data to inform workforce planning, retention strategies, and project scheduling. This comprehensive analysis provides the detailed breakdown needed to benchmark your organization against industry standards and identify critical areas for improvement.

What you’ll learn in this report:

How construction turnover is calculated
Turnover rates by construction role type
Turnover by project type
Geographic turnover patterns
Financial impact of construction turnover
Drivers of turnover and how to fix them
Industry benchmarking guidelines

How Construction Turnover Rate Is Calculated

Construction turnover measures the percentage of workers who leave their positions within a 12-month period. This includes voluntary departures, layoffs, end-of-project exits, and retirements. Workers who shift between projects within the same company are generally excluded.

Standard formula: (Workers Who Left ÷ Average Total Workforce) × 100 = Annual Turnover Rate

Project-specific formulas:

Project Turnover Rate = (Workers Who Left ÷ Avg. Project Headcount) × 100
Seasonal Turnover Rate = (Off-Season Departures ÷ Peak Worker Count) × 100
Skilled Trades Turnover = (Skilled Departures ÷ Avg. Skilled Workforce) × 100

Construction companies often track turnover by project phase and by seasonal patterns, given the industry’s cyclical nature. Many organizations distinguish between voluntary departures and project completion departures to better understand retention challenges.

Construction Turnover Rates by Role Type

Different construction positions face varying turnover challenges due to differences in skill requirements, physical demands, and career advancement opportunities.

Construction Role	Avg. Annual Turnover	Turnover Range	Primary Factors
General Laborers	89.3%	75% to 110%	Entry-level Seasonal work Limited advancement
Skilled Trades (Electricians, Plumbers)	73.1%	65% to 85%	High demand Contractor mobility Project cycles
Heavy Equipment Operators	67.2%	55% to 80%	Specialized skills Project-based assignments
Carpenters	71.8%	60% to 85%	Seasonal demand Independent contractor options
Project Supervisors	52.4%	45% to 65%	Management stress Multiple project demands
Safety Coordinators	48.7%	40% to 60%	Regulatory pressure Liability concerns
Administrative Staff	41.3%	35% to 50%	Office-based stability Fewer physical demands
Project Managers	44.9%	38% to 55%	High responsibility Tight deadlines Travel requirements

General laborers experience the highest turnover rates due to the entry-level nature of many positions, combined with seasonal work patterns and limited opportunities for skill development. Many workers in these roles view construction as temporary employment while seeking more stable opportunities.

Skilled trades workers face unique retention challenges due to high market demand that creates numerous job opportunities. Many skilled tradespeople operate as independent contractors, moving between projects based on pay rates and working conditions.

Administrative positions maintain greater stability through office-based work environments that don’t require physical labor or exposure to weather conditions. These roles often provide more predictable schedules compared to field-based positions.

Turnover Rates by Project Type

Different construction sectors create varying working conditions that directly impact workforce retention patterns.

Project Type	Avg. Annual Turnover	Distinguishing Factors
Residential Construction	82.4%	Seasonal patterns Weather dependency Smaller crews
Commercial Construction	71.6%	Longer project timelines Stable crews Complex coordination
Infrastructure Projects	63.8%	Multi-year projects Government contracts Specialized skills
Industrial Construction	69.2%	Hazardous conditions Specialized equipment Remote locations
Road Construction	78.5%	Weather-dependent Mobile crews Equipment-intensive
Bridge / Heavy Civil	58.3%	Long-term projects Specialized expertise Union involvement
Renovation / Remodeling	91.7%	Short-term projects Client-driven schedules Variable scope

Renovation and remodeling projects face the greatest retention challenges due to short project durations, which create constant job searching cycles for workers. These projects often have unpredictable timelines and scope changes that affect workforce planning.

Infrastructure and bridge construction achieve lower turnover through longer project timelines that provide employment stability. These projects often require specialized skills that command higher wages and create career development opportunities.

Residential construction experiences high turnover due to seasonal building patterns and weather-dependent work schedules. Many residential workers seek indoor employment during the winter months in northern climates.

Geographic Construction Turnover Variations

Regional factors, including climate, economic growth, and labor market conditions, create significant geographic differences in construction turnover rates.

Region	Avg. Turnover Rate	Market Dynamics
Sunbelt (South/Southwest)	72.3%	Year-round building Rapid growth Competitive markets
Northeast Metro	69.8%	Seasonal restrictions High costs Union presence
Midwest Rural	78.4%	Weather limitations Agricultural competition Limited projects
West Coast Cities	71.2%	High wages Housing costs Environmental regulations
Mountain West	66.9%	Growing markets Outdoor lifestyle Energy projects
Great Plains	81.6%	Seasonal work Agricultural cycles Population decline
Southeast Coastal	74.1%	Hurricane seasons Tourism cycles Boom-bust patterns

Sunbelt states experience moderate turnover, despite rapid construction growth, due to year-round building seasons that provide more consistent employment opportunities. However, intense competition for skilled workers drives frequent job changes.

The Great Plains region faces the highest turnover due to harsh winter seasons that halt most outdoor construction activities. Workers in these areas often migrate seasonally or seek alternative employment during cold months.

Mountain West regions demonstrate relatively lower turnover as growing economies create diverse construction opportunities. Energy sector projects in states like Colorado and Utah provide specialized employment, reducing workforce mobility.

Financial Impact of Construction Turnover

Replacement costs include recruiting, onboarding, equipment training, safety compliance, and productivity loss during ramp-up.

Position Category	Avg. Replacement Cost	Cost Range	Time to Full Productivity
General Laborer	$3,200	$2,500 – $4,500	2–4 weeks
Skilled Tradesperson	$12,800	$8,500 – $18,000	8–12 weeks
Equipment Operator	$15,400	$11,000 – $22,000	6–10 weeks
Project Supervisor	$28,700	$22,000 – $38,000	12–16 weeks
Project Manager	$45,300	$35,000 – $58,000	16–20 weeks
Safety Coordinator	$19,600	$15,000 – $26,000	8–12 weeks
Foreman	$22,400	$18,000 – $29,000	10–14 weeks

Key Factors Driving Construction Turnover

These drivers consistently appear across projects, companies, and regions.

Turnover Driver	Impact Level	Effective Counter-Strategies
Seasonal Work Patterns	High	Year-round project diversification Indoor work options
Pay and Benefits	High	Competitive wage reviews Performance bonuses Benefits packages
Safety Concerns	High	Comprehensive safety programs Equipment investment Training
Physical Demands	Medium	Equipment upgrades Rotation programs Ergonomic improvements
Job Security	High	Long-term contracts Skills training Career path development
Work-Life Balance	Medium	Flexible scheduling Local project preference Reduced travel

Seasonal work patterns consistently rank as the top concern for construction workers in most climates. Companies addressing this through diversified project portfolios or partnerships with indoor construction sectors see improved year-round retention.

Pay and benefits competition intensifies during peak construction seasons when demand for skilled workers exceeds supply. Organizations maintaining competitive compensation packages throughout the year, rather than just during busy periods, achieve better retention results.

Safety concerns significantly impact turnover as workers increasingly prioritize workplace safety over higher wages. Companies investing in comprehensive safety programs and modern equipment experience measurable improvements in workforce stability.

Industry Benchmarking Guidelines

Construction companies use these turnover benchmarks to evaluate their retention performance and identify key areas for improvement.

Performance Categories:

Excellent Retention: Below 45%
Good Retention: 45% – 60%
Industry Average: 60% – 75%
Above Average Concern: 75% – 90%
Critical Intervention Needed: Above 90%

Construction companies should benchmark against similar project types and regional markets rather than overall industry averages. A 60% turnover rate might be excellent for residential construction, but concerning for long-term infrastructure projects.

Leading construction companies track turnover by project phase, skill level, and employment duration to identify specific retention challenges. They also monitor new hire turnover separately, as high early turnover often indicates problems with recruitment processes or unrealistic job expectations.