Data from the U.S. Bureau of Labor Statistics (BLS) shows that the U.S. construction industry has more than reclaimed the job losses experienced in 2020-2021. In fact, the industry employed more people in May 2023 (6.225 million) than it did pre-COVID in May 2019 (6.194 million).
More recent employment data has provided additional encouragement to jobseekers. The construction industry created an additional 9,000 jobs in April 2024 after creating 40,000 more in March. Compared to April a year ago, roughly 258,000 new jobs had been created.
Job opportunities in construction are forecasted to remain strong through 2032. Even though the pace of job growth is expected to remain in line with employment as a whole, an aging workforce is helping to create roughly 646,100 job openings per year.
After taking this big picture view, it is clear that the construction industry remains a hot job market well into 2024 — and well into the future.
States with the most jobs
Construction jobs are being created in most areas of the country. Even in many of the states that have experienced recent job losses, their overall employment situation remains strong.
According to April 2024 employment data analysis by the Associated General Contractors of America (AGC), 39 states had seen job growth over the previous 12 months, led by Texas, Florida and Michigan. The 11 states that experienced job losses were led by New York, Ohio and Maryland.
Ken Simonson, AGC’s Chief Economist, said surging demand for data centers, manufacturing plants, power projects and infrastructure have been helping to offset soft demand from homebuilders and developers.
While employment numbers will always fluctuate from month to month, the most recent Employment & Wage Report from the BLS provides an indication of which states employ the most construction workers. The states offering the most jobs are:
- California
- Texas
- Florida
- New York
- Pennsylvania
- North Carolina
- Washington
- Illinois
- Ohio
- Arizona
- Virginia
- Michigan
- Massachusetts
One interesting thing to note is that many of the states with the most construction jobs are not among the best-paying states. In fact, Texas, Florida, North Carolina, Arizona, Virginia and Michigan all pay an average wage that is below the national average. That’s why it’s important for construction workers to not only look for the biggest job markets, but also consider other factors such as earnings potential and overall quality of life.
States with the best wages
BLS data from May 2023 shows that the average hourly wage for a “construction and extraction” worker is $29.57. That’s a solid increase from two years earlier when the average was $26.87. Looking back to pre-COVID 2019, the average was $22.80. So over the past five years, average wages have climbed nearly 30%.
Of course, construction workers in some states garner a higher wage than in others, likely for a variety of reasons. Regardless of what those reasons are, May 2023 BLS data shows that the top-paying states are:
- Hawaii — $39.50
- Massachusetts — $39.07
- New Jersey — $38.90
- Illinois — $38.14
- Washington — $37.17
- California — $35.84
- New York — $35.75
- Alaska — $35.59
- Minnesota — $34.64
- Oregon — $33.68
- Rhode Island — $32.79
- Connecticut — $31.95
- Wisconsin — $31.52
- Nevada — $31.37
- Missouri — $31.31
- Pennsylvania — $30.93
- Indiana — $30.08
- Ohio — $30.01
NOTE: BLS data shows that average hourly wages across the country have continued to rise in 2024. The national average hourly wage for a private sector construction worker was $37.57 in February. In April it had ticked up to $38.02.
States with the most growth potential
In addition to wages, jobseekers should also look for indications of sustainable growth in construction activity.
“Those indicators are economic growth and population growth,” Simonson said. “When those indicators are strong, the situation is much different than when, for example, there is a hurricane or other natural disaster that leads to a lot of temporary construction activity in a certain state.”State GDP. Overall U.S. GDP grew by 2.5% in 2023, according to data released by the U.S. Bureau of Economic Analysis. The following states generated the most growth:
- North Dakota — 5.9%
- Texas — 5.7%
- Wyoming — 5.4%
- Oklahoma — 5.3%
- Alaska — 5.3%
- Nebraska — 5.2%
- Florida — 5.0%
- Washington — 4.8%
- West Virginia — 4.7%
- Kansas — 4.3%
- New Mexico — 4.1%
- South Carolina — 3.6%
- Kentucky — 3.5%
- Idaho — 3.5%
- Tennessee — 3.2%
- Louisiana — 3.0%
State construction GDP. The following states saw construction activity making the largest contribution to overall state GDP growth in 2023:
- South Dakota — 0.49%
- North Dakota — 0.47%
- Kentucky — 0.40%
- Wyoming — 0.29%
- Alaska — 0.25%
- West Virginia — 0.25%
- New Mexico — 0.25%
- Nevada — 0.25%
- Arizona — 0.24%
- Florida — 0.23%
- Idaho — 0.22%
- North Carolina — 0.19%
- Wisconsin — 0.18%
Population. A large and growing population is a catalyst for construction activity. Demand for housing, infrastructure and other amenities increases as more people move into an area. Below are the 10 most populous states based on July 2023 data from the U.S Census Bureau:
- California — 38,965,193
- Texas — 30,503,301
- Florida — 22,610,726
- New York — 19,571,216
- Pennsylvania — 12,961,683
- Illinois — 12,549,689
- Ohio — 11,785,935
- Georgia — 11,029,227
- North Carolina — 10,835,491
- Michigan — 10,037,261
Population growth. The following states saw the most population growth from 2020-2023:
- New Hampshire — 23,352
- New Jersey — 18,449
- Kentucky — 17,999
- Iowa — 16,100
- Nebraska — 15,106
- Wisconsin — 14,255
- Maryland — 6,564
- Wyoming — 6,393
- Vermont — 4,528
- North Dakota — 4,363
And the 10 best states for constructions jobs in 2024 are ….
- Florida
- California
- Texas
- New York
- Illinois
- Pennsylvania
- Ohio
- Washington
- Massachusetts
- North Carolina
Well beyond the top 10 states listed above, there are a lot of great things happening in the construction industry. From job opportunities and rising wages to prospects for future growth, now is a great time to build a great career in the construction industry.
