Immigration Enforcement and Tariffs Worsen Nebraska Construction Workforce Shortage

(NEBRASKA) Nebraska’s construction industry is entering late 2025 with a sharper worker shortfall tied to stepped-up immigration enforcement and the threat of new tariffs, a one-two punch that firms say is delaying projects and pushing costs higher across the state. Employers from Omaha to Grand Island report fewer applicants for open roles, rising turnover among immigrant crews, and bids that now carry bigger risk buffers for labor and materials. Industry data shows the squeeze is not easing despite strong demand for housing and infrastructure.

As of August 2025, national surveys show 92% of firms are struggling to fill open positions, and 45% cite labor gaps as a primary reason for project delays. In Nebraska, 64% of contractors report trouble hiring for some or all roles. The state’s Worker Shortage Index sits at 0.72—meaning there are only 72 available workers for every 100 open jobs—leaving about 45,000 openings against roughly 32,375 unemployed workers. Nebraska’s unemployment rate is 3.0%, near historic lows, but construction job growth is capped by a lack of people ready and able to work on sites.

Enforcement and tariffs reshape labor supply

The Trump administration’s renewed push on worksite immigration enforcement in 2025 is reaching construction, which employs large numbers of immigrant workers, both documented and undocumented. According to industry surveys, nearly one-third of construction firms nationwide say recent federal actions have directly affected their workforce.

Nebraska employers describe heightened worry among immigrant crews, questions about job stability, and more people choosing to leave the state or exit the sector rather than risk exposure at work. That anxiety shows up in fewer filled shifts, rescheduled pours, and higher overtime as supervisors scramble to keep projects on track.

“There’s definitely some… fear, in the market, among the workforce because we do have a largely… immigrant workforce. They’ll ask our teams in the field frequently, ‘Hey, what’s going to happen here? Are they going to try to send me home?’” — Rex Kirby, Verdex Construction

Tariff worries are adding pressure. Ongoing trade disputes and the possibility of higher duties on steel, aluminum, and lumber from key trading partners have not been settled. Nebraska contractors say this keeps material prices elevated and volatile.

Estimators now factor in swings for steel joists, metal studs, rebar, and aluminum curtainwall, which complicates long-term planning. When paired with thinner labor pipelines, small delays in deliveries can cascade into weeks of lost time because the right crews are not available to re-sequence work.

“Construction workforce shortages aren’t just a problem for the construction industry. Construction projects of all types are being delayed because there aren’t enough qualified workers available for firms to hire.” — Ken Simonson, chief economist, AGC

That warning echoes across Nebraska’s public works, private housing, and commercial builds, where schedules now include wider buffers to account for labor and material swings.

Project impacts: staffing, scheduling, pricing

The practical effects show up in three primary areas: staffing, scheduling, and pricing.

Staffing
– 88% of firms have openings for craft workers.
– 57% say candidates lack essential skills or licenses.
– Nebraska contractors report many applicants require entry-level training and safety certifications before working at height or handling specialized tools.
– This onboarding lag keeps existing crews stretched thin.

Scheduling
– 45% of firms report project delays due to labor shortages.
– Crews are booked out longer, subcontractors pass on work they can’t staff, and general contractors juggle trade calendars to avoid idle time.
– Enforcement actions can make workers cautious about showing up or switching employers, so a few no-shows can push pours and utility tie-ins into later phases and vendor deliveries.

Pricing
– Material quotes remain bumpy as tariff news shifts; suppliers often hold prices for shorter windows.
– Contractors carry larger contingencies for tariff-prone items, which raises bid totals.
– Higher labor costs—overtime, retention pay, and bonuses—add further pressure on project budgets.

“I see us still struggling to get labor for quite a while… that’s truthfully, around the north central region as well, whether Denver, St. Louis, Des Moines, Omaha.” — Andy Heitmann, Turner Construction

Regional recruiting competition matters: workers may move where they feel safer or where wages rise faster to offset risk.

Worker anxiety remains a daily factor. Employers report more questions about site checks and paperwork, more requests to transfer to less visible assignments, and greater churn on specialized tasks—welding, framing, electrical, mechanical—that rely on steady teams. When crews churn, both quality and speed suffer.

Policy responses and employer actions

Industry groups, including the Associated General Contractors (AGC), are urging federal steps to ease the pinch:
– Double funding for high school career and technical education.
– Create a construction-specific temporary work visa.
– Resolve trade disputes to stabilize pricing.

They argue Nebraska’s shortage stems from long-term trends—aging workers, fewer apprentices, and weak training pipelines—and that stricter enforcement without new lawful pathways shrinks the pool further.

On compliance, Nebraska employers are tightening hiring files and audit readiness. Many are reviewing Form I-9 processes and training managers to spot document errors before they cause bigger problems. Employers noted that careful onboarding is now as much a risk-control step as a hiring step.

For official guidance, see the federal instructions for Form I‑9, Employment Eligibility Verification which explain acceptable documents and verification procedures. Firms stress that clean records help reduce exposure if auditors arrive.

Company playbooks now include:
1. More in-house training to grow entry-level hires into productive craft workers within months.
2. Retention pay, attendance bonuses, and flexible scheduling to keep core crews.
3. Pre-ordering key materials or arranging alternate suppliers to soften tariff shocks.
4. Sequencing adjustments—such as prefabrication offsite—to keep projects moving with fewer workers onsite.

According to VisaVerge.com analysis, construction employers in states like Nebraska that rely on immigrant labor feel enforcement effects faster and more sharply than sectors with deeper domestic pipelines. That aligns with Nebraska’s construction employment share—about 6.3% of total jobs—and a tight overall labor market.

Public-sector impacts and cascading effects

Tensions extend into the public sector. Agencies managing road, bridge, and school projects face higher bids and longer delivery times. Economists warn these delays will affect:
– Housing affordability
– Infrastructure upgrades
– Commercial development timelines

Consequences include:
– More expensive temporary solutions when school renovations run late.
– Disrupted business logistics when road jobs slip.
– A cycle where fewer workers lead to longer schedules, longer schedules raise costs, and higher costs cause owners to scale back scope—all while specialized crews remain hard to find.

Some policymakers emphasize law enforcement and protecting domestic workers. Contractors counter that the current mix—tight labor, more audits, and tariff threats—reduces productive capacity without ready replacements. They propose a construction-focused temporary visa targeting verified employers and vetted workers for specific trades and durations to improve safety, tax compliance, and fill gaps training cannot close quickly.

Operational adjustments and outlook

Nebraska firms are making practical adjustments now:
– General contractors partner with community colleges to fast-track safety cards and trade basics.
– Larger companies invest in bilingual foremen and safety leads to improve communication and reduce turnover.
– Subcontractors share crews across sister companies for crunch days.
– Owners are urged to lock design early and avoid late changes.
– Some builders break large projects into smaller packages to attract midsize subs that can staff shorter, discrete scopes.

Board-level focus has grown. Executives request monthly updates on:
– Crew counts
– I-9 audit readiness
– Tariff exposure

Field leaders push for cross-training so carpenters can assist with light concrete or installation tasks when schedules slip. Estimators seek earlier supplier commitments to hold pricing. Both union and open-shop employers report the same core problem: not enough skilled hands.

Surveys into 2026 show most firms expect the labor shortage to continue or worsen unless federal policy changes and trade talks calm markets. Contractors say they will keep bidding, but with clearer escalation clauses and more cautious timelines.

Human effects: anxiety and uncertainty

The human side runs through every scenario:
– Workers worry about their families if a raid hits their site.
– Foremen feel pressure to deliver with crews that change week to week.
– Owners want certainty that shovels will hit the ground when permits clear.

Nebraska’s construction workforce shortage—shaped by immigration enforcement and tariff threats—is no longer a distant policy debate. It is a daily reality on job sites, in bid rooms, and in the budgets of public agencies and private developers across the state.