United States, August 14, 2025
News Summary
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.
U.S. Construction Industry Faces Rising Costs and Labor Shortages in 2025
The U.S. construction industry is navigating through a period of significant uncertainty as we move further into 2025. Despite a strong demand for new housing and infrastructure, challenges such as rising costs and labor shortages have emerged as critical issues facing this vital sector.
The ongoing shortage of affordable housing has intensified the demand for new builds. At the same time, federal investments have spurred development projects across the country. However, these factors are countered by recent slowdowns in overall construction spending, primarily due to elevated interest rates and broader economic concerns.
By the end of 2024, construction employment had risen to over 8 million, representing 6.1% of private-sector jobs, according to the Bureau of Labor Statistics. Despite a recovery since the Great Recession, employment levels have not yet rebounded to pre-2008 figures. At a low point in early 2011, construction accounted for only 4.8% of private-sector jobs.
Workforce Composition and Regional Trends
The construction sector encompasses a diverse range of occupations. Laborers make up the largest segment at 11.0%, followed by first-line supervisors at 7.7% and carpenters at 7.3%. Other common roles include electricians (7.2%), plumbers (4.6%), and HVAC technicians (3.7%). Smaller shares are comprised of masons (2.4%), painters (2.2%), and roofers (1.6%). Moreover, construction managers and general operations managers each represent 3.4% of total employment, while project managers account for 2.7%.
Regionally, states like Wyoming, Utah, and Idaho stand out with the highest concentrations of construction workers. Wyoming leads at an impressive 11.0%, while Utah and Idaho follow closely with 9.5% and 9.3%, respectively. Notably, all eight Mountain West states rank among the top ten for construction employment as a share of total jobs, with growth attributed to housing and infrastructure development. Conversely, states in the Northeast, along with several in the Midwest, report lower construction employment shares, suggesting a more mature economy with slower growth.
Future Projections and Employment Growth
Looking ahead, construction employment is expected to grow by 5.6% from 2023 to 2033, outpacing the average job growth rate for all occupations, which sits at 4.0%. As of late 2024, full- and part-time construction workers enjoy a national median wage of $58,360 annually—18% greater than the overall median salary. Wage growth has been notable in the last two years, with construction wages increasing by 15.4%, a substantial bump compared to the average 6.9% seen across other professions.
In terms of pay, Illinois tops the list as the best-paying state for construction workers, with a cost-adjusted median annual wage of $79,328. Other Midwest states, such as Minnesota ($70,923) and North Dakota ($68,859), also offer competitive salaries. Conversely, many Southern states report lower wages, with several cities in Florida and Texas ranking among the least lucrative.
Labor Market Challenges
The tight labor market in the construction sector has driven rapid wage increases. Specialized roles, in particular, command premium rates due to the high demand. For instance, in Montana, the governor emphasizes the critical need for skilled workers to support ongoing growth. According to state reports, the construction industry will require approximately 1,000 new workers annually for the next eight years.
Moreover, a staggering 96% of contractors in Montana have unfilled positions, primarily focused on craft roles such as operators and mechanics. However, a significant barrier to workforce participation exists, as around 70,000 workers face challenges due to insufficient childcare facilities. Despite these hurdles, Montana’s labor force has reached a new high, with over 10,000 new workers entering the job market in the past year.
Frequently Asked Questions
What is the current state of the U.S. construction industry?
The U.S. construction industry faces significant uncertainty due to rising costs and labor shortages, despite high demand for housing and infrastructure.
What is the expected job growth in construction?
Construction employment is projected to grow by 5.6% from 2023 to 2033, surpassing the average growth for all occupations.
Which states have the highest construction wages?
Illinois has the highest wages for construction workers, followed by Minnesota and North Dakota. Many Southern states rank lower in comparison.
Key Features of the Construction Industry Overview
| Feature | Description |
|---|---|
| Current Employment | Over 8 million workers in the construction sector |
| Wage Growth | 15.4% increase in construction wages over the past two years |
| Top Paying State | Illinois with a cost-adjusted median wage of $79,328 |
| Future Projections | 5.6% expected job growth in construction from 2023 to 2033 |
| Regional Trends | Mountain West states have the highest concentration of construction workers |
Deeper Dive: News & Info About This Topic
Additional Resources
- KULR8: Construction Industry Employs 8.7% of Montana Workers
- Montana Right Now: Montana Construction Workers Earn 12th Most in U.S.
- Business Insider: Montana Contractors Face Labor Shortage
- KULR8: Best Paying Construction Professions in Montana
- Wikipedia: Construction Industry
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
