Shrinking Share of Tradesmen in the Construction Workforce

Economics
Published

The American construction labor force is continuing its momentum away from construction trades and towards management, business and technical roles, according to NAHB’s analysis of the latest 2024 data from the American Community Survey (ACS).

The share of construction trades workers declined from 71% in 2005 to less than 59% in 2024 while the share of computer, engineering and science occupations has more than doubled, and management and business roles have expanded by 73%.

How many people work in the construction labor force? 

In 2024, there were 12.1 million construction labor force workers. Construction trades, including carpenters, electricians, painters, plumbers and first-line supervisors, accounted for 7.1 million workers or 58.8% of the total. There were 8.5 million of these trades workers at the peak of 2006, which explains the persistent labor shortages in the field today.

Have the number of white-collar working jobs increased?

Yes, management ranks grew from 1.2 million to two million workers over the same time period, increasing its share from 10 to 17%. The number of engineers, architects and science-related occupations more than doubled. However, white-collar jobs are less common in construction than in the broader U.S. economy. 

Why are there fewer tradesmen and more white-collar jobs in the construction force?

The expansion of management and business roles may reflect increasing regulatory complexity, permitting requirements and compliance costs. These influences can lengthen project timelines and raise overhead without directly increasing output.

For more analysis of this data, read this Eye on Housing article from NAHB economist Natalia Siniavskaia.

 

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