Construction Industry Statistics in the U.S. in 2023

Last Updated: 3rd of March, 2023

The construction industry holds a prominent place in the US economy, with over 745,00 companies that provide employment to over 7.8 million people annually. Continue reading to gain a comprehensive understanding of the construction industry in the U.S., including information on job opportunities, market trends, salaries, and other relevant statistics.

Key Takeaways

✓ In 2022, the U.S. construction sector had a market size of approximately 1.6 trillion U.S. dollars, and it was projected to grow even more in the coming years (Statista).

✓ There are 3,787,470 Construction businesses in the US as of 2023, an increase of 2.5% from 2022. (ibisworld)

✓ The industry has more than 753,000 employers with over 7.8 million employees Agc.org

The construction industry accounts for roughly 4.3% of U.S. GDP. (zippia.com)

Section 01

Labor Force Statistics

Find the latest employment and unemployment statistics for the construction industry in the U.S. in the section below:

In January 2022, about 7.5 million workers, or 4.8% of the US workforce, were employed in the construction sector.

December saw an increase in the number and rate of job openings, reaching 11 million and 6.7% respectively.

The construction industry saw one of the biggest job openings with +82,000 new job openings.

The construction field is expected to grow 4% from 2021 to 2031, resulting in an estimated 252,900 new jobs.

About 723,400 yearly openings are expected due to growth and replacement needs.

 

25,000 jobs were added in January in the construction industry.

The growth reflects an average monthly employment increase of 22,000 in the construction industry.

The projected revenue for the construction industry in 2023 is estimated to be USD 11.13 billion.

In the U.S. construction industry, there are over 733,000 employers.

Approximately 4.8% of the entire U.S. workforce is comprised of workers in the construction industry.

The unemployment rate reached 6.9% in January 2023 in the construction industry.

In December 2022, the unemployment rate in the construction industry was 4.4%.

Approximately 10.9% of all construction workers are women. And an expected annual growth rate of 2.70% is predicted. 

Section 02

Construction Earnings and hours

The expected growth in employment in the construction industry by 4% from 2021 to 2031 is predicted to result in about 252,900 new jobs over the decade. But what does this translate to in terms of earnings and working hours? Continue reading for more information. 

The median annual salary for construction workers was USD 48,210, surpassing the median annual salary across all occupations which was USD 45,760.

The average hourly earnings for workers in the construction industry were approximately USD 31,44.

Construction laborers occupy the lowest position in the pay scale, with an hourly average pay of $20.92. Conversely, construction managers are at the pinnacle, receiving an average hourly pay of $51.02 or an annual pay of $106,120.

Boilermakers: $64,290 (bottom 10% earned less than $46,040, top 10% earned more than $100,240),

Carpenters: $48,260 (bottom 10% earned less than $31,880, top 10% earned more than $80,940),

Construction and building inspectors: $61,640 (bottom 10% earned less than $38,110, top 10% earned more than $100,520),

Construction equipment operators: $48,290 (bottom 10% earned less than $35,770, top 10% earned more than $84,640),

Construction laborers and helpers: $37,520 (bottom 10% earned less than $28,660, top 10% earned more than $62,590)

Drywall and ceiling tile installers: $48,040 (bottom 10% earned less than $30,460, top 10% earned more than $95,600)

Tapers: $61,080 (bottom 10% earned less than $37,980, top 10% earned more than $100,160)

Section 03

Construction industry by state

This section will explore the construction industry across the different states in the US, highlighting the varying levels of construction businesses and job opportunities for workers.

The states of California, Florida, and New York boast the largest number of construction businesses in the US, with 80,657, 60,042, and 49,602 businesses respectively.

As of 2023, the number of construction businesses in the US has risen to 3,787,470, representing a 2.5% increase from the previous year.

Over the five-year period between 2018 and 2023, the construction industry in the US has seen an average annual growth of 2.5% in the number of businesses.

Texas has the highest employment level in construction laborers with 103,870 workers.

California follows in second place with 102,510 employers in the construction industry.

New Mexico has the highest concentration of jobs and location quotients in construction laborers with 10,380 employees.

Utah follows with 19,250 employed in construction.

Illinois is the top paying state for construction laborers with an annual mean wage of USD 61,930.

Next are New Jersey with an annual mean wage of USD 60,880 and New York.

The annual mean wage for construction laborers in New York is USD 60,410.

Metropolitan areas with the highest employment level in construction laborers are New York-Newark-Jersey City, NY-NJ-PA with 46,830 employees.

Next are Los Angeles-Long Beach-Anaheim, CA with 28,290 employees.

Section 04

Construction industry market trends and the pandemic

Read the section below to learn more about the market trends in the construction industry during the pandemic and after the pandemic.

According to labor statistics, the construction industry faced a shortage of both staff and labor, with 381,000 job openings in February 2022.

The construction industry had approximately 60,000 job openings prior to the pandemic.

A study spanning three years found that only 31% of construction projects were completed within 10% of their original budgets.

Bechtel, with a revenue of $21.8 billion in 2019, is the biggest construction company in the US.

Construction spending rose by 4.8% from 2019 to 2020.

In 2020, the total amount spent on construction was $1.43 trillion, with $813.9 billion allocated to residential construction, a rise of approximately 12% from 2019 to 2020.

Meanwhile, nonresidential construction spending decreased by 0.04% during the same period, covering projects such as lodging, office, manufacturing, and educational facilities.

Nonresidential construction starts declined by 27% from 2019 to 2020.

In 2020, the value of new construction projects was $38.6 billion, a figure that has decreased since then as companies have halted construction of new offices and other facilities during their recovery from the pandemic.

The construction industry lost over 1.1 million jobs in March and April of 2020.

However, since May 2020, approximately 931,000 jobs have been regained in the industry.

Construction is projected to be valued at approximately $1.23 trillion in 2024.

It’s estimated that there will be approximately 300,200 additional construction jobs in 2029 compared to 2019.

Section 05

U.S. construction spending data and material cost

If you’re considering a career in construction but are unsure if it aligns with your goals, understanding the potential hazards can assist in making an informed decision since the construction industry accidents account for the highest fatality rate among all industries, with a fatal injury rate of 10.2% in 2020 and 9.7% in 2019.

The average total construction spending in the US was $1.18 trillion between 2011 and 2021.

In 2021, the private sector construction spending in the US was $1.25 trillion, while the public sector construction spending was $346 billion.

The commercial construction spending in the US was $97 billion in 2022, while single-family residential construction spending was $404 billion.

According to FMI, spending is projected to reach $415 billion by 2023, a 3% increase.

The multifamily residential construction spending in the US was $119 billion in 2022, with a forecasted spending of $123 billion by 2023, a 4% increase.

In 2021, the construction industry accounted for 4.2% of the US GDP.

The construction industry had the highest number of preventable fatal injuries, 28% higher than the transportation and warehousing industry which was ranked second.

Approximately 250,000 preventable construction injuries were seen by medical professionals in 2020.

In 2020, there were 174,100 reported cases of nonfatal injuries or illnesses in the construction industry.

Out of these, 74,500 resulted in missed workdays, 31,900 led to job transfer or restrictions, and 67,600 were classified as other recordable cases.

The leading type of injury, accounting for 20,640 cases, was sprains, strains, or tears.

Section 05

Construction injury and fatal accidents statistics

Read the section below to learn what prices have increased and what prices have not increased in the construction market.

The average total construction spending in the US was $1.18 trillion between 2011 and 2021.

In 2021, the private sector construction spending in the US was $1.25 trillion, while the public sector construction spending was $346 billion.

The commercial construction spending in the US was $97 billion in 2022, while single-family residential construction spending was $404 billion.

According to FMI, spending is projected to reach $415 billion by 2023, a 3% increase.

The multifamily residential construction spending in the US was $119 billion in 2022, with a forecasted spending of $123 billion by 2023, a 4% increase.

In 2021, the construction industry accounted for 4.2% of the US GDP.

Global supply chain constraints and pre-recession inflation have caused widespread spikes in material prices at various times.

Although some prices have returned to their previous levels, the overall trend has shown a net increase from January to November of 2022, with lumber being the exception.