As of June 2025, the U.S. construction labor market is facing significant challenges, including rising labor costs, persistent worker shortages, and regional disparities.

Labor costs have increased by 3.7% year-over-year, with wages climbing even higher in high-demand urban areas. Skilled trades, such as electricians and plumbers, are especially scarce, and the industry is struggling with an aging workforce and a lack of new entrants. Immigration policy uncertainties and heightened competition for workers are further tightening the labor pool. While automation and technology adoption are slowly helping to improve productivity, they do not fully address the labor shortage. As construction demand remains strong, particularly in infrastructure and residential sectors, these labor challenges are expected to persist throughout the remainder of 2025, driving higher costs and longer project timelines.