As of early 2025, the U.S. construction industry employs approximately 8.29 million workers, a figure that has surpassed pre-2008 levels. This reflects steady sector expansion, adding about 178,000 jobs (+2.2%) year-over-year, despite modest hiring in some months (e.g., ~4,000 jobs added in January).

Wages remain strong, with construction workers earning about $36.54 per hour, which is roughly an 18% premium over the private-sector average (~$30.84). Combined with hours worked, weekly earnings average around $1,512, a 24% premium over general private-sector labor compensation.

Labor Shortages: A Persistent Concern

The industry faces a critical labor shortage, with estimates indicating a need for 200,000 to 400,000 additional workers nationwide.

Demand remains high—between August 2023 and July 2024, construction averaged 382,000 job openings monthly, a trend likely tied to booming sectors like manufacturing, data centers, and non-residential construction.

From the contractor perspective:

• 78% of firms struggle to fill hourly craft roles, and 77% have difficulty hiring salaried staff
• 91% report challenges in finding qualified workers (e.g., carpenters, electricians)
• 94% still cannot fill positions, even with wage boosts—first-year wages rose 4.6% by mid-2024, and 91% of firms increased base pay rates for hourly roles

Policy and Demographics Impact

• Immigration policy is affecting labor availability
• Diversity and inclusion programs face setbacks due to policy shifts threatening funding for nonprofits that recruit women and minorities into trades—an area critical for addressing labor gaps (estimated 400,000 skilled workers needed this year)
• Aging workforce: As Baby Boomers retire, the labor supply shrinks, making automation and training even more essential
• Project Labor Agreements (PLAs): Under Executive Order 14063, federal projects exceeding $35 million now require PLAs, supporting job quality, local hiring, apprenticeships, and union agreements—impacting roughly $262 billion in contracts
• Clean energy investments under the Inflation Reduction Act are spurring massive growth: over 406,000 clean energy jobs and $422 billion in investments across 751 projects as of early 2025—all of which bolster construction employment in renewables and infrastructure

What It All Means

• Strong demand exists, especially in non-residential, infrastructure, and clean energy sectors—but labor shortages remain one of the greatest barriers to meeting that demand.
• Wages and incentives are rising—but so are labor costs, putting pressure on budgets and profitability.
• Technology is a force multiplier, enhancing safety, efficiency, and addressing workforce constraints—but requires new skills and training.
• Training, diversity, and inclusion are not just morally important—they’re essential to building the skilled workforce the industry needs.
• Policies matter: Immigration, infrastructure funding, labor agreements, and environmental incentives are all playing major roles in shaping construction job dynamics.

Final Thought

As of mid-2025, construction jobs in the U.S. are at a crossroads. The rise of infrastructure, technology, and sustainability initiatives offers immense opportunity—but only if labor demand can be met. Automating where possible, embracing inclusive workforce strategies, and investing in tech-savvy training will be critical for companies that want to build not only structures, but a resilient, future-ready industry.