Boom vs. Bust? How Two Cities Reveal the Future of Construction Jobs

The construction industry in 2025 presents a fascinating study in contrasts. While some regions experience robust growth and struggle to find enough workers, others face declining employment and project opportunities. This uneven landscape creates both challenges and opportunities for contractors nationwide. Understanding these regional disparities is crucial for construction business owners looking to navigate the current employment environment effectively.

Current Construction Employment Landscape

The latest Bureau of Labor Statistics data reveals a complex picture for the construction sector. Total nonfarm payroll employment increased by 147,000 in June 2025, with the unemployment rate holding steady at 4.1%. Within the construction industry specifically, employment grew by 15,000 jobs, with non-residential construction adding 9,200 positions and residential construction contributing 5,500 new jobs.

However, these national figures mask significant regional variations. Construction spending currently stands at $2,138.2 billion annually, representing a slight decrease of 0.3% from April. Private construction spending has declined by 0.5% monthly to $1,626.6 billion, while public construction has seen a modest 0.1% increase to $511.6 billion.

Regional Disparities in Construction Jobs

The contrast between thriving and struggling construction markets has become increasingly pronounced in 2025. According to the research data, certain metro areas are experiencing substantial job growth while others face declining employment opportunities.

The data reveals stark differences in construction jobs across regions:

These regional disparities are driven by several factors, including:

1. Local economic conditions and investment patterns

2. Regulatory environments that either encourage or hinder development

3. Population migration trends affecting housing demand

4. Infrastructure spending priorities at state and local levels

Construction Hiring Challenges Across Markets

The Associated Builders and Contractors (ABC) projects a need for approximately 439,000 new workers in 2025 to meet construction demand, with that number expected to increase to 499,000 by 2026. This significant workforce gap creates substantial challenges for contractors nationwide.

Over 90% of contractors report difficulties filling both hourly and salaried positions, though the severity of these challenges varies by region. In high-growth areas, the competition for skilled workers has intensified, driving up wages and creating project delays. Meanwhile, in regions with declining construction activity, skilled workers are relocating to more promising markets, further exacerbating local labor shortages.

Many contractors are adjusting their construction hiring strategies to address regional labor shortages. These approaches include:

• Developing relationships with local trade schools and community colleges

• Implementing in-house training programs to develop talent

• Offering competitive compensation packages and career advancement opportunities

• Utilizing technology to improve productivity with fewer workers

• Exploring untapped labor pools, including veterans and workers from adjacent industries

Understanding Construction Careers in Today’s Market

The nature of construction careers is evolving rapidly in response to industry changes. Today’s construction professionals need a broader skill set than previous generations, combining traditional craft skills with technological proficiency and business acumen.

Young workers are increasingly interested in construction careers due to competitive wages and advancement opportunities. The average hourly earnings in construction have reached $36.30, representing a 3.7% increase year-over-year. This wage growth outpaces many other industries, making construction an attractive career option.

The future of construction careers will likely involve more technology skills and specialized knowledge. As the industry adopts advanced tools like Building Information Modeling (BIM), robotics, and AI-assisted project management, workers with both technical and digital skills will be in highest demand.

How Many Construction Workers in the US: Distribution and Demand

Current data shows how many construction workers in the US are unevenly distributed across different regions. With a national total of approximately 7.7 million construction workers, the distribution varies significantly by region:

• The South leads with the highest concentration of construction workers

• The Midwest maintains a stable construction workforce

• The Northeast faces some of the most severe skilled labor shortages

• The West shows the most dramatic regional variations, with some areas booming while others contract

Understanding how many construction workers in the US are available in your region can help with project planning. This knowledge allows contractors to develop realistic timelines, accurate bids, and appropriate risk management strategies based on local labor availability.

Construction Employment Trends: Sector-Specific Analysis

Current construction employment trends show a stark contrast between high-growth and declining regions. Beyond geographic differences, there are also significant variations across construction sectors.

The military construction sector is projected to see the strongest growth at 56%, driven by increased defense spending and facility modernization efforts. Hotel construction follows at 28% growth, reflecting recovery in the hospitality and tourism industries. Shopping/retail construction (25%) and manufacturing construction (23%) also show robust growth projections.

Commercial construction overall is expected to grow by a modest 2%, though this figure masks substantial variations within specific commercial subsectors. Residential construction presents a mixed picture, with multifamily housing outperforming single-family in many regions.

Addressing the Skilled Labor Shortage in Construction

The skilled labor shortage in construction remains one of the industry’s most pressing challenges in 2025. This shortage is particularly acute in specialized trades like electrical, plumbing, and HVAC, where training requirements are more extensive.

Regional differences in the skilled labor shortage in construction create varying challenges for contractors. In high-growth regions, the competition for skilled workers has intensified to unprecedented levels, while declining regions face the exodus of their most talented workers.

Industry leaders recommend several approaches to address this challenge:

1. Invest in apprenticeship programs that provide structured on-the-job training

2. Partner with educational institutions to develop curriculum aligned with industry needs

3. Implement technology solutions that enhance productivity and reduce labor requirements

4. Develop clear career pathways that attract and retain talented workers

5. Advocate for policy changes that support workforce development initiatives

Future Outlook: Construction Workforce Challenges and Opportunities

Companies face different construction workforce challenges depending on their regional market. These challenges are likely to persist through 2025 and beyond, requiring strategic approaches from industry stakeholders.

The construction industry is undergoing significant transformation, driven by several key factors:

• Technology integration is creating demand for new roles like BIM Specialists and Construction Technology Managers

• Sustainability focus is generating opportunities for Green Building Consultants and Renewable Energy Specialists

• Infrastructure investment is driving strong demand for civil engineers and heavy equipment operators

Understanding regional construction workforce challenges is essential for effective business planning. Contractors who can anticipate these challenges and develop proactive strategies will be best positioned for success in this dynamic environment.

Recommendations for Contractors

Based on the current construction employment landscape, contractors should consider the following strategies:

1. Develop region-specific approaches that address local market conditions

2. Invest in workforce development through training programs and educational partnerships

3. Embrace technology solutions that enhance productivity and reduce labor dependencies

4. Consider geographic expansion into high-growth regions if currently operating in declining markets

5. Specialize in sectors with strong growth projections like military, hospitality, or manufacturing construction

6. Create compelling employment packages that attract and retain talented workers

7. Build strong relationships with subcontractors and trade partners to ensure labor availability

Conclusion

The construction employment landscape in 2025 truly represents a tale of two cities. While some regions and sectors experience robust growth and severe labor shortages, others face declining opportunities and workforce contraction. This uneven distribution creates both challenges and opportunities for contractors nationwide.

By understanding these regional disparities and developing targeted strategies to address them, construction business owners can position themselves for success despite the challenging environment. Those who invest in workforce development, embrace technological solutions, and adapt to changing market conditions will find opportunities even in this complex landscape.

Contractor Accelerator remains committed to providing the resources, training, and insights that help construction professionals navigate these challenges successfully. By staying informed about construction employment trends and implementing strategic approaches to workforce development, contractors can turn these industry challenges into competitive advantages.