Industry changes
The median hourly wage for construction workers increased from $23.18 in 2021 to $28.06 in 2024, according to LendingTree’s study. Meanwhile, median wages across all industries rose from $22 to $23.80.
This wage increase comes alongside slower job growth in the sector. From 2021 to 2024, construction employment rose by only 8.8%, trailing the 9.4% growth seen across all industries. The disconnect suggests that labor shortages, not booming hiring, are pushing wages higher.
Several long-term factors are driving the shortage, including an aging workforce, a shortage of young entrants into the skilled trades, and increased demand from infrastructure, urbanization, and private development projects.
Despite the current hiring strain, long-term forecasts remain optimistic. The US Bureau of Labor Statistics projects a 4.7% increase in construction jobs between 2023 and 2033, compared to a 4.0% growth rate for all industries.
But reaching that target will require a major recruitment effort. The Associated Builders and Contractors estimates the industry will need to hire an additional 439,000 workers in 2025 and another 499,000 in 2026 to meet projected demand.