The construction labor market in 2025 continues to experience dynamic shifts driven by economic conditions, demographic trends, technological innovations, and policy changes.

Labor shortages, rising wages, and evolving skill requirements remain at the forefront of industry challenges, while infrastructure investments and housing demand sustain high levels of construction activity. The U.S. construction industry employs more than 7.9 million workers as of early 2025, a modest increase from the previous year. Unemployment in construction hovers around 4.2%, slightly below the national average, indicating strong demand and a tight labor market. We expect that there will be continued demand for labor with increasing pressure on wages, while employers are likely to invest more in training and technology to mitigate labor gaps.