The construction labor shortages have become a worldwide issue. It is keep increasing from year to year due to the rapid development of the country. It is also becoming the greatest challenge for Malaysian construction sector. The practice of the daily payment wages, less comfortable working area, and no career development become the excuses for the locals from joining the construction sector. Moreover, the ageing labor’s rates also cause the labor shortage in the sector since the vacancies that they left, hardly filled by the newcomers. The result of the labor shortage in the construction sector leads to the import of foreign labor as an alternative solution. Though at first sight, this seems like a good solution for this sector, but it is not as easy as what has been planned. The lengthy procedures to hire foreign labor leads to another problem to them since they need the labor to work instantly but the processes hinder their intentions and cause them facing the labor shortage problem. Therefore, this study has come out with two objectives which are to determine the relationship between local participation, ageing labor and government procedure with the labor shortage and to identify the most influential factor of the labor shortage in construction companies in Klang, Selangor. This study has used census inquiry where it can be presumed that all the items are covered and no elements should be left from the study. The target populations are the managers or their subordinate in the Human Resource Department in construction companies in Klang, Selangor. The findings indicate that all the independent variables (local participation, ageing labor and government procedure) have a significant relationship with the dependent variable (labor shortage). Furthermore, the multiple aggression analysis has been conducted in order to identify the most influential factor between independent variables. For the result of that, the ageing labor was the most influential factor for the labor shortage. Based on the research findings, the researchers suggested several recommendations for the problem of the labor shortage in construction companies in Klang, Selangor.
