How Is Government Shutdown Impacting Construction?
Key Highlights
- Government shutdowns cause permitting delays, halting projects and delaying hiring processes;
- Shutdowns of systems like E-Verify slow onboarding, especially impacting international talent acquisition;
- Disruptions in federal contract work can lead to immediate project delays and financial losses for contractors;
- Economic uncertainty from shutdowns causes private sector hesitation, delaying investments and employment decisions;
- Regions with high government employment experience reduced consumer spending, indirectly affecting construction demand.
PRESS RELEASE
Tampa, FL, October 20, 2025 – 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.”
Key Findings from Hays
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.
About Hays
Hays is the world’s leading specialist in recruitment and workforce solutions, including Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP) services. Hays is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia, and one of the market leaders in Continental Europe, Latin America, and Asia. Hays operates across the private and public sectors, dealing in permanent positions, contract roles, and temporary assignments. Hays employs over 10,300 staff operating from 225 offices in 33 countries.
For more information, visit hays.com