Diverse workforce contributing to the construction industry's growth amidst challenges.
United States, August 14, 2025
The U.S. construction industry confronts significant challenges as it grapples with rising costs, labor shortages, and economic uncertainty while facing strong demand for housing and infrastructure. Despite a workforce of over 8 million and a projected growth rate of 5.6% in employment, structural issues hinder the industry’s ability to meet demands. The sector experiences remarkable wage growth, particularly in specialized positions, but the lack of support systems like childcare remains a barrier to full participation in the economy. The industry must adapt to these complexities to foster sustainable growth.
The U.S. construction industry is grappling with notable challenges as it enters 2025. Despite high demand driven by ongoing housing shortages and increased federal investments in infrastructure, rising costs and labor shortages complicate the sector’s recovery.
Construction employment reached over 8 million by the end of 2024, comprising 6.1% of total private-sector jobs, according to data from the Bureau of Labor Statistics. While this figure represents significant recovery since the Great Recession, it has not yet matched pre-2008 employment levels, which amounted to approximately 8.4 million jobs. Following a collapse that saw the percentage of construction jobs fall to 4.8% in early 2011, the sector has been gradually rebuilding itself.
The construction workforce is diverse, consisting of various occupations. Laborers make up 11.0% of the workforce, while first-line supervisors represent 7.7% and carpenters 7.3%. Other significant roles include electricians (7.2%), plumbers (4.6%), HVAC technicians (3.7%), masons (2.4%), painters (2.2%), and roofers (1.6%). In terms of management, construction managers and general operations managers each account for 3.4%, while project managers make up 2.7% of the workforce.
Regional data shows that Wyoming, Utah, and Idaho have the highest concentration of construction workers, with Wyoming leading at 11.0% of its workforce in construction. All eight Mountain West states rank among the top ten for construction employment as a percentage of total jobs, spurred by the demand for housing and infrastructure. In contrast, states in the Northeast and parts of the Midwest report lower construction employment shares, likely due to slower growth rates and more mature economies.
Looking to the future, construction employment is anticipated to grow by 5.6% over the next decade, surpassing the average growth rate for all occupations, which stands at 4.0%. This increase is crucial, especially as the overall construction spending has recently slowed due to high interest rates and general economic uncertainty.
As of now, full- and part-time construction workers earn a national median wage of $58,360 annually, which is 18% higher than the overall median wage across all occupations. Construction wages have seen a surge, increasing by 15.4% in the last two years. Illinois is identified as the highest-paying state, with median construction wages of $79,328 when adjusted for cost of living. Other states like Minnesota ($70,923) and North Dakota ($68,859) also offer competitive wages. Conversely, some Southern states, including certain cities in Florida and Texas, rank among the lowest for construction wages when adjusted for living costs.
The shortage of skilled labor remains a pressing issue. In Montana, Governor Greg Gianforte highlighted the urgent need for skilled workers to meet construction demands in the state. The Montana Department of Labor and Industries reports that construction will require 1,000 additional workers annually for the next eight years. Currently, 96% of contractors in Montana have open positions, primarily targeting craft roles like operators and mechanics.
Adding to the complexity of the labor situation, nearly 70,000 workers* in Montana face barriers to full economic participation due to insufficient childcare facilities. This issue highlights the larger challenges facing the industry, as the overall labor force in the state has set a new record, with more than 10,000 Montanans entering the workforce in the last year.
The construction industry is at a crossroads, with high demand offset by labor shortages and rising costs. As challenges persist, understanding employment trends and wage growth is essential for navigating the future of this vital sector.
The main challenges include rising costs, labor shortages, and slowed construction spending due to high interest rates and economic uncertainty.
Construction employment is projected to grow by 5.6% from 2023 to 2033, which is higher than the average growth rate for all occupations at 4.0%.
The national median wage for construction workers is $58,360 annually, which is 18% higher than the overall median wage.
Illinois has the highest median annual wage for construction workers at $79,328. Other highly ranked states include Minnesota and North Dakota with wages of approximately $70,923 and $68,859, respectively.
| Feature | Details |
|---|---|
| Current Employment | Over 8 million in construction |
| Employment Share | 6.1% of private-sector jobs |
| Growth Projection | 5.6% from 2023 to 2033 |
| Median Wage | $58,360 annually |
| Highest Paying State | Illinois, $79,328 |
| Labor Shortage | Need for 1,000 new workers annually in Montana |
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