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Immigrant Construction Workers and Workforce Continuity Risk for Carolinas Contractors in 2026

Immigration enforcement just emptied Chicago jobsites of experienced workers, the Illinois ABC chapter is on the record about the wage and schedule fallout, and Carolinas contractors should be reading the playbook before it lands here. Here is what E-Verify, I-9 audits, and workforce continuity look like in the next twelve months.

Table of Contents

Key Takeaways

  • Immigrant labor is central to U.S. and Carolinas construction, with foreign-born workers comprising approximately 25% of the construction labor force nationally and higher shares in key trades like drywall, concrete, and roofing.
  • The April 25, 2026, Chicago Sun-Times reported on coordinated ICE raids across Chicagoland commercial jobsites that caused immediate work stoppages and critical-path delays—Illinois ABC president Alicia Martin observed that “our biggest gap isn’t entry-level labor anymore—it’s experienced, highly skilled immigrant craft professionals.”
  • Tighter E-Verify use, increased I-9 audits, and heightened visibility of worksite enforcement in 2026 create schedule, cost, and reputational risks for non-compliant firms and their subcontractor networks.
  • Approximately 28% of construction firms have reported being impacted by immigration enforcement, creating a climate of uncertainty that affects workforce stability.
  • ABC Carolinas members can access detailed labor-shortage data, workforce strategy guidance, and member-only I-9/E-Verify audit readiness tools through our Construction Industry Labor Shortage Data Drivers and Strategic Responses hub, Free Enterprise Alliance resources, and Construction Workforce Management guidance.

Overview: Immigrant Labor and a Changing Enforcement Landscape in 2026

North and South Carolina contractors depend heavily on immigrant construction workers at all skill levels—from laborers and carpenters to concrete finishers and superintendents. Federal enforcement priorities have shifted significantly since 2024, creating new continuity risks for 2026 projects across the construction sector.

The Chicago Sun-Times coverage on April 25, 2026, described coordinated ICE operations at several Chicago-area commercial construction sites, resulting in immediate work stoppages, delayed pours, and emergency re-sequencing of critical-path activities. Multiple job sites shut down within hours.

Alicia Martin, president of ABC Illinois, captured the operational reality: “Our biggest gap isn’t entry-level labor anymore—it’s experienced, highly skilled immigrant craft professionals that companies can’t easily replace when raids or audits sideline their crews.”

This article provides a practical, business-impact analysis for owners, executives, and HR leaders at Carolinas commercial contractors who need to understand how these national trends affect local projects, compliance decisions, and workforce planning. The focus remains on workforce continuity, federal compliance expectations, and pragmatic strategies aligned with merit shop principles—not political or partisan arguments.

Immigrant construction workers face a combination of heightened legal insecurity, systemic economic exploitation, and elevated physical risk that affects workforce stability across the industry.

A group of construction workers, wearing hard hats, are actively working on a commercial building site with steel framing visible in the background. This scene highlights the essential role of immigrant construction workers in the construction industry, contributing to economic growth and addressing labor shortages.

Demographics: Immigrant Participation in the U.S. and Carolinas Construction Workforce

Immigrant workers are not a niche group but a core component of the modern construction labor force nationally and in the Carolinas. This is particularly true in high-growth metro areas like Charlotte, Raleigh-Durham, Greenville-Spartanburg, and Charleston, where demand continues to outpace labor supply.

The construction industry contributed approximately 4.4% of the national gross domestic product in 2023, highlighting its significant role in the U.S. economy. Approximately 25% of the U.S. construction labor force is foreign-born, compared to about 18-19% of the overall U.S. workforce. In key states like California and Texas, immigrant workers comprise over 40% of the construction workforce.

Immigrant Workforce by Trade

Key Trades Dominated by Immigrants

  • Drywall and ceiling tile installers: 57% foreign born
  • Plasterers and stucco masons: 56% foreign born
  • Painters: Over 50% foreign born
  • Roofers: 50% foreign born
  • Construction laborers: 43% foreign born

In the Washington, DC, and Baltimore metro areas, immigrants make up 39% of the construction workforce—approximately 130,000 individuals. El Salvador is the top country of origin for immigrant construction workers, accounting for 37% of all foreign-born workers, followed by Guatemala at 12% and Honduras at 11%. Eighty-eight percent of immigrant construction laborers identify as Hispanic.

Experience Levels and Tenure

Experience Levels Among Immigrant Construction Workers

  • Approximately one-third have 10+ years in the industry
  • Another third have 5-9 years of experience
  • The remainder have under 5 years

Legal Status and Recent Arrivals

  • More than half (53%) of immigrant workers in the construction industry arrived in the United States after 2000.
  • Only 27% are naturalized U.S. citizens, highlighting the legal status challenges this workforce faces.

The construction industry faces a severe labor shortage, with an estimated need for 501,000 additional workers in 2024 alone to meet current demand—largely due to low immigration rates and an aging workforce. Associated Builders and Contractors projects gaps of 500,000-650,000 workers annually through 2028. Carolinas contractors compete for this constrained talent pool while delivering federally funded infrastructure, industrial, and data-center projects that intensify demand.

Federal Enforcement Priorities: What Has Changed by 2026

Federal enforcement evolved from broad interior-enforcement pauses earlier in the decade to a 2024-2026 environment in which worksite compliance is again a visible focus for DHS and ICE. The April 2026 Chicago actions demonstrate this shift clearly.

Recent Enforcement Actions

The April 25, 2026, Chicago Sun-Times coverage described coordinated ICE operations at several Chicago-area commercial construction sites, resulting in immediate work stoppages, delayed pours, and emergency re-sequencing of critical-path activities. Multiple job sites shut down within hours.

Current Federal Priorities

Federal priorities now emphasize:

  • Employer I-9 compliance verification
  • Misuse of subcontracting to hide unauthorized labor
  • High-profile operations signaling construction are under scrutiny
  • Targeting labor exploitation through subcontracting chains

Compliance Risks for Contractors

While large multistate companies may be primary targets, medium-sized regional contractors in North Carolina and South Carolina face increased risk through random or complaint-driven I-9 audits and E-Verify record reviews.

Penalty Ranges for I-9 Violations in 2026

Violation Type Penalty Range
Technical paperwork errors Low hundreds per form
Knowing-hire violations Thousands per unauthorized worker
Continuing-employment violations Thousands per worker
Repeat offenders Tens of thousands + potential federal contract debarment

Beyond civil fines, contractors risk project shutdowns, schedule slippage, exposure to liquidated damages, and reputational harm if enforcement sidelines a significant portion of the workforce. Many undocumented workers avoid reporting safety violations or wage theft for fear of employer retaliation or immigration enforcement, creating additional compliance blind spots.

E-Verify and I-9 Compliance: How the Rules Work in Carolina Construction

The federal I-9 requirement, applicable since 1986, requires all employers to verify employment eligibility. E-Verify is the electronic system cross-checking new hires against DHS and Social Security records. Both systems matter significantly to contractors in the Carolinas in 2026.

North Carolina Requirements

  • Most contractors over certain employee thresholds must run E-Verify for new hires
  • State contracting rules impose stricter obligations
  • Federal prime contracts layer additional verification clauses

South Carolina Requirements

  • Long-standing E-Verify requirements for participating employers
  • Applies to all new hires since 2008
  • Construction faces closer scrutiny due to the historic misuse of unauthorized labor

Steps for a Compliant I-9/E-Verify Process

  1. Complete Section 1 (employee) on or before the first day of employment
  2. Complete Section 2 (employer) within three business days
  3. Inspect original documents for genuineness and relevance
  4. Submit E-Verify case within required timeframes
  5. Handle tentative non-confirmations via employee referral within eight federal workdays
  6. Maintain consistent retention and re-verification procedures

Common Failure Points on Commercial Jobsites

  • Foremen informally handling paperwork instead of trained HR
  • Inconsistent processes across branches or divisions
  • Poor digital recordkeeping
  • Discriminatory practices demanding specific documents from foreign-born workers

ABC Carolinas offers templates, sample policies, and member-only webinars on building standardized, repeatable hiring and verification workflows.

An HR professional is seated at a desk, reviewing employment documents on a computer, focusing on the hiring processes within the construction industry, which often employs a diverse workforce including immigrant construction workers and laborers. The scene captures the essential role of HR in ensuring fair treatment and compliance in an industry facing labor shortages.

Subcontractor Labor Compliance: Vetting and Monitoring in a High-Enforcement Environment

Many high-profile enforcement actions, including those covered in the Chicago Sun-Times, involved tiered subcontractor structures in which the general contractors did not directly employ much of the affected workforce yet still absorbed schedule and reputational damage.

Core Elements of Subcontractor Due Diligence in 2026

  • Prequalification questions on I-9 and E-Verify practices
  • Written commitments to follow federal and state employment-eligibility laws
  • Willingness to participate in periodic spot checks or third-party reviews

Recommended Subcontract Language

  • Use of E-Verify where mandated or contractually required
  • Maintenance of complete I-9 files
  • Cooperation in audits and investigations
  • Indemnification provisions consistent with the company’s risk tolerance

Standard Subcontractor Questionnaire Elements

  • Workforce size and composition
  • Use of labor brokers or independent contractors
  • Prior I-9 audit history
  • Policies for training supervisors on document review

Undocumented workers in the construction industry often face exploitative conditions, including low wages and unsafe working conditions, due to reliance on labor brokers. Firms in high-enforcement regions use tier mapping of labor—tracking which workers belong to which subcontractor at each site—and require subs to designate a compliance point of contact.

ABC Carolinas can connect members with sample subcontract language and peer benchmarks for vetting processes.

Workforce Continuity Risk: Lessons from Chicago and Other High-Enforcement Markets

The April 25, 2026, Chicago Sun-Times story illustrates how raids removing dozens of experienced immigrant workers from active jobs can instantly disrupt critical-path activities, even when the prime was not the direct employer.

As Alicia Martin observed, the most acute continuity risk lies in the loss of seasoned, highly skilled migrant workers—foremen, lead carpenters, concrete finishers, steel erectors, and superintendents—whose experience is not easily backfilled by the local labor pool.

Immediate Operational Impacts

  • Unplanned shutdowns of specific trades
  • Forced resequencing of work
  • Overtime costs to re-staff shifts
  • Schedule extensions triggering liquidated-damages discussions
  • Intensified inspection scrutiny from owners

Medium-Term Implications

  • Erosion of team cohesion when long-tenured members disappear
  • Additional safety training risks as inexperienced replacements ramp up
  • Worker reluctance to move between construction sites for fear of visibility

Latino and foreign-born workers have a fatality rate of 4.3 per 100,000, exceeding the national average, according to the “Death on the Job” report of 2026. Language barriers increase the risk of accidents; many safety training programs are provided only in English.

Consider this scenario: A poured-in-place parking structure or tilt-wall industrial building loses its core immigrant concrete crew mid-project. Even with aggressive re-staffing, milestones can slip by weeks while new workers integrate with existing teams and learn site-specific requirements.

The image depicts a bustling commercial construction site where construction workers are actively pouring concrete, surrounded by various equipment and concrete forms. This scene highlights the essential role of immigrant construction laborers in the construction industry, addressing the ongoing labor shortages faced by the sector.

Proven Workforce Continuity Strategies in High-Enforcement Regions

Contractors in high-enforcement states over the past decade—Arizona, parts of Texas, and Midwest markets—have tested and refined continuity strategies that Carolinas firms can adapt.

Strategic Approaches for Workforce Continuity

  • Diversified recruiting pipelines blending immigrant and native born workers
  • Formal apprenticeship and upskilling programs to grow internal talent
  • Structured cross-training to reduce dependency on single crews
  • Proactive verification and documentation practices

Recommended Practices for Workforce Continuity

  • Maintain a slightly larger bench of qualified, fully documented employees than the minimum project requirements
  • Develop active relationships with multiple reputable staffing partners
  • Map contingency labor sources for critical construction trades
  • Conduct “continuity drills” with HR, operations, and legal to simulate audit scenarios

Many immigrant construction workers do not have health insurance or receive benefits, making them more vulnerable to health risks. The construction industry relies heavily on immigrant labor, particularly in skilled trades, as many have been in the U.S. for decades and possess valuable experience. Workforce continuity planning should integrate with safety culture and quality systems.

ABC Carolinas helps members benchmark continuity strategies through our Construction Workforce Management guidance.

ABC and Industry Projections: The Labor Gap and Immigrant Experience Levels

The immigrant labor question sits within the broader labor-shortage context documented by ABC and national industry partners in our Construction Industry Labor Shortage Data Drivers and Strategic Responses hub.

The U.S. construction industry needs 501,000 additional workers in 2024 alone, beyond normal hiring, to meet demand driven by infrastructure, industrial reshoring, and private development. Recent policy changes, such as the Infrastructure Investment and Jobs Act of 2021, are expected to increase pressure, necessitating a 30% increase in the workforce to meet new infrastructure demands.

Projected Labor Shortages and Roles Most Affected

  • Over 40% of the current construction workforce is expected to retire within the next decade, exacerbating existing labor shortages.
  • Industries facing labor shortages, like construction, cannot afford enforcement disruptions that remove experienced professionals.

Most Difficult-to-Fill Roles for Carolinas Members

  • Experienced carpenters
  • Concrete finishers
  • Heavy-equipment operators
  • HVAC and electrical technicians
  • Site supervisors

These roles directly affect businesses’ ability to meet project schedules and support continued economic growth in the region. Ignoring immigrant workforce dynamics leaves structural gaps in succession planning and long-term capacity.

Compliance-Focused HR and Operations Practices for 2026

HR leaders and operations managers share responsibility for building systems in which every new hire and trade partner is vetted consistently, properly documented, and integrated into safe, lawful workplaces.

Key HR Practices

  • Standardized hiring packets and checklists
  • Trained HR staff handling I-9 and E-Verify (not field foremen)
  • Regular internal audits of I-9 files
  • Non-discriminatory document acceptance policies
  • Clear re-verification procedures

Core Operations Practices

  • Align project staffing with documented labor availability
  • Communicate compliance expectations to superintendents
  • Ensure labor-only subcontractors understand requirements

Additional Compliance Procedures

  • Establish escalation protocols for E-Verify tentative non-confirmations, DHS/ICE contact, or suspected documentation issues.
  • Develop training modules for field leaders on proper response if enforcement officials arrive—cooperation within legal parameters, record preservation, and immediate communication with designated contacts.

Construction workers are five times more likely to be hospitalized with COVID-19 than other employees due to close contact and sharing tools—another reason proper workforce documentation and fair treatment protocols matter.

ABC Policy Positions on Workforce Visa Reform and Regulatory Clarity

ABC at the national and chapter levels supports legal, market-based approaches to workforce supply, including reforms to temporary-worker programs and clearer employment-eligibility rules for employers.

ABC Advocacy Priorities

  • Expanding and modernizing legal pathways for workforce visa programs relevant to construction
  • Regulatory environments prioritizing employer clarity and due-process protections
  • Clear I-9 and E-Verify guidelines with reasonable audit response timelines
  • Consistent treatment of merit shop contractors

The Free Enterprise Alliance provides a broader context on how immigration, workforce, and regulatory policy intersect with free enterprise. ABC Carolinas aligns regional advocacy with national principles while addressing Carolinas-specific needs for builders and contractors.

Immediate Action Steps for Carolinas Contractors and HR Leaders

Steps to Take in the Next 30-90 Days

  • Conduct an internal I-9 self-audit with counsel guidance
  • Review E-Verify enrollment and procedures for all entities and locations
  • Standardize onboarding checklists across offices and jobsites
  • Update subcontractor agreements with clear labor-compliance language
  • Hold a joint leadership session with HR and operations to review workforce composition
  • Map critical roles vulnerable to enforcement shocks
  • Identify cross-training gaps in succession planning

Engage ABC Carolinas to access member-only tools: sample audit checklists, webinars on ICE and DOL inspections, labor-shortage data summaries, and guidance from our Construction Workforce Management resources.

Communicate transparently with teams about the increased compliance focus—reinforcing that the goal is to maintain lawful, safe job sites while protecting the company’s ability to win and deliver work.

How ABC Carolinas Can Support Your Workforce and Compliance Strategy

ABC Carolinas serves as the regional partner for commercial contractors, specialty trades, and suppliers navigating immigrant workforce realities, labor shortages, and heightened enforcement in North and South Carolina.

ABC Carolinas Offerings

  • Safety training programs open to citizen workers and immigrant workers alike
  • Apprenticeship and craft education pathways for workforce development
  • Management education on HR, compliance, and workforce planning
  • Member-only briefings on federal and state-level changes
  • Peer-to-peer knowledge sharing with firms in other regions

Connect with ABC Carolinas staff to schedule a workforce risk review, explore apprenticeship partnerships, or access resources from our Construction Industry Labor Shortage Data Drivers hub. Treat ABC Carolinas as your long-term strategic ally in managing workforce continuity and compliance in a changing 2026 environment.

FAQ

How vulnerable are Carolinas jobsites to the kind of ICE raids reported in Chicago in April 2026?

While enforcement strategy varies by region, construction remains a nationally visible sector. The April 25, 2026, Chicago Sun-Times report shows multi-site, multi-employer operations are again on the table. Vulnerability depends on subcontractor structures, prior compliance history, use of labor brokers, and the quality of the I-9/E-Verify program—not just geography. Carolinas contractors should assume similar actions are possible and prepare through strong documentation practices and clear on-site response protocols.

What should my company do if we receive notice of an I-9 audit or an unannounced visit from federal agents?

First, verify the identity and credentials of officials. Notify your designated internal contact in HR or legal. Contact your employment or immigration counsel immediately. Cooperate within the scope of the warrant or notice while preserving your rights. Staff should be trained not to obstruct officials, not to volunteer unnecessary information, and never to destroy or alter records. Create a written enforcement response plan and train key managers before any event occurs.

How can we support immigrant workers on our job sites while maintaining full compliance?

Supporting immigrant workers and complying with the law are complementary goals. Fair wages, strong safety programs, bilingual safety training, and respectful working conditions benefit all workers and reduce risk. Companies must avoid discriminatory document practices during I-9 completion and follow the same lawful process for all new hires. Offering formal education through apprenticeships helps workers build careers regardless of their native-born status or work authorization status.

Are there specific trades or roles where losing immigrant workers would hurt us the most?

National and regional labor statistics show that immigrant workers are heavily concentrated in concrete, framing, drywall, roofing, masonry, and some mechanical roles. The greatest risk lies with mid- to late-career professionals—foremen, lead hands, specialists with 10+ years—who require months to replace. Companies should map which critical roles on current projects are heavily staffed by immigrants and prioritize cross-training and succession planning for those areas to avoid greater risk to project delivery.

Where can we find up-to-date data and guidance on construction labor shortages and immigrant workforce policy?

Access ABC Carolinas’ Construction Industry Labor Shortage Data Drivers and Strategic Responses hub for current data on labor gaps specific to construction. ABC National and the Free Enterprise Alliance publish policy analyses on immigration, visa reform, and workforce-related regulatory changes. Attend ABC Carolinas briefings and webinars where staff interpret federal policy in the context of North and South Carolina markets, helping your home builders and commercial contractors plan accordingly.