Labor Report Shows Dire Need for New Construction Workers
America will need thousands of new skilled construction workers to reduce the nation's housing deficit — a shortfall NAHB estimates to total 1.5 million homes — according to the latest Construction Labor Market Report from the Home Builders Institute (HBI).
The free report provides an overview of the current state of the nation’s construction labor market.
Key findings in the report include:
- There are currently 8.3 million payroll construction workers in the U.S. Of those, 3.4 million work in residential construction.
- The estimated, required amount of construction worker hiring is approximately 723,000 per year, according to NAHB analysis of BLS data and projections.
- As of August, the six-month moving average of new residential construction worker hiring is 5,667 per month.
- Average hourly wages in the overall construction industry have increased 4.3% over the last year.
- The average hourly earnings of construction workers is $38.30 as of July, higher than the national average hourly earnings for manufacturing ($34.10) and all U.S. occupations ($35.10).
- Women make up a growing share of construction employment, reaching 10.8% in 2023, up significantly from 9.1% in 2017.
- Hispanics make up close to a third of the construction labor force (31.1%), a record high share.
To learn more about the residential construction labor market, view the report.
NAHB Chief Economist Robert Dietz and HBI CEO Ed Brady discussed the report’s key findings, trends and possible solutions for the labor shortage in a recent HBI podcast episode embedded below:
Latest from NAHBNow
Jun 09, 2025
NAHB HBCU Student Leaders Expand Skills with Impressive Residential Construction InternshipsThis summer, two student leaders from NAHB's HBCU leadership program cohort are learning the intricacies of home building and achieving their professional dreams.
Jun 06, 2025
Bill Championed by NAHB Would Address Major Flood Mapping Issue in California, NationwideLegislation that NAHB has been seeking for two years that would allow new housing developments to go forward in California and bring down insurance costs for home buyers and home owners was introduced in Congress today.
Latest Economic News
Jun 09, 2025
AI’s Role in Reshaping Employment: From Theory to Home Building Sector ImpactsThe rapid rise of artificial intelligence (AI), particularly machine learning and generative AI (GenAI), is reshaping industries, creating new economic opportunities, and raising critical questions about its long-term impact on jobs and economic growth.
Jun 06, 2025
U.S. Economy Added 139,000 Jobs in MayDespite ongoing economic and policy uncertainty, the labor market remains resilient, though early signs of softening are beginning to emerge. Job growth moderated in May, and employment figures for March and April were notably revised downward. The unemployment rate remained at 4.2%.
Jun 05, 2025
States with Highest and Fastest Rising Construction Wages, 2025Wage growth in construction continued to decelerate in April on a national basis, but the differences across regional markets remain stark.