PurposeThe factors contributing to skilled labor shortages in the construction industry are investigated based on relevant global literature. The potential factors are collected, organized and subjected to expert evaluation to determine their inter-relationships. The identified factors are integrated to determine both direct and indirect impacts, clarifying their relative importance.Design/methodology/approachApart from literature reviews, the decision-making trial and evaluation laboratory (DEMATEL) method was employed to elucidate influential relationships among the factors. Intuitive assessments and DEMATEL with and without the shortage factors were used to compare the impact of various factors on skilled labor shortages.FindingsSignificant differences were observed between considering only direct effects and both direct and indirect effects. Factors identified through comprehensive evaluation were prioritized; poor overall wages, poor overall welfare and lack of retirement income security and unclear career path owing to lack of prospects and talent plans were the three important factors identified.Research limitations/implicationsThe disparity between construction companies and key stakeholders, such as government agencies, public sector clients, pre-project planners, designers and consulting engineers, stems from differing priorities concerning skilled labor in the construction industry. In this study, evaluations of most experts from construction companies and the gap ratio for data reliability were implemented for the analysis. In the future, more experts from government agencies, and other groups should be included while focusing on the shortage in individual trades of skilled workers. In addition, the proposed measures require further evaluation for interactive influence and effectiveness.Originality/valueThe interactive relationship among the factors influencing skilled labor shortages is explored to determine measures to alleviate their influence. This can aid policymakers in identifying effective solutions.