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Construction Employment Update: Lackluster Jobs Growth Hides Underlying Turmoil

By Michael Guckes, Chief Economist 

KEY POINTS

  • Construction job growth slowed sharply, averaging just over 5,000 new jobs per month from March to May, down from 14,400 monthly in the second half of 2024.

  • Residential sub-trades lost 22,000 jobs, marking a 2% decline since September 2024. Total employment fell to 2.38 million.

  • Construction workers earned a 24% weekly pay premium, averaging $1,537 compared to $1,243 in the private sector, driven by higher wages and longer average weekly hours.

Construction Job Growth Drops 

Total construction employment has slowed noticeably since February. From March through May, the average monthly construction job creation rate was just over 5,000, a steep decline from the 14,400 average monthly jobs added during the second half of 2024.

The slowdown is concentrated in the residential sub-trades, which shed 22,000 jobs over the three months. Meanwhile, other construction labor segments have posted gains:

  • Nonresidential sub-trades: Added 20,000 jobs

  • Residential building: Added 9,000 jobs

Residential Construction Sub-Trades Face Losses 

Residential sub-trades employment peaked at 2.42 million in September 2024, but by the end of May 2025, the workforce dropped to 2.38 million—a 2% decline, totaling 40,000 lost jobs. This sharp contraction mirrors declines last seen during the Great Recession, excluding COVID-related fluctuations.

Continuing immigration constraints, which affect labor supply, are contributing to the slowdown. An estimated 15% of U.S. construction workers are unauthorized, and tightening policies continue to limit workforce growth.

wages construction vs private weekly constructconnect snapshot

Weekly construction wages versus private sector pay give the average construction worker a $294 weekly pay premium, or 24% higher earnings than the typical private-sector employee. Image: ConstructConnect

Construction Wages Outpace Private Sector Pay 

Despite job losses, construction wages remain strong. In May:

  • Average hourly wage: $39.42

  • Average hours worked/week: 39

  • Weekly earnings: $1,537

In comparison, the total private sector averaged:

  • Hourly wage: $36.24

  • Weekly hours: 34.3

  • Weekly earnings: $1,243

This gives the average construction worker a $294 weekly pay premium, or 24% higher earnings than the typical private-sector employee.


Read the Construction Economy Snapshot for more details on construction labor, trends, and regional analysis.

snapshot June 2025 constructconnect starts

 
Michael Guckes, Chief Economist
Michael Guckes is regularly featured as an economics thought leader in national media, including USA Today, Construction Dive, and Marketplace from APM. He started in construction economics as a leading economist for the Ohio Department of Transportation. He then transitioned to manufacturing economics, where he served five years as the chief economist for Gardner Business Media. He covered all forms of manufacturing, from traditional metalworking to advanced composites fabrication. In 2022, Michael joined ConstructConnect's economics team, shifting his focus to the commercial construction market. He received his bachelor’s degree in economics and political science from Kenyon College and his MBA from the Ohio State University.
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