Gitnux/Report 2026

California Construction Industry Statistics

California’s construction paycheck is climbing alongside costs and risk, with 2023 median hourly pay at $38.50 and construction input prices up 5.0% that year, while private spending still reached $198.4 billion in 2023 and contracts fell 6.8% year over year in Q2 2024. Track how California is funding R and D at a top US level, building through housing and solar expansion, and meeting tighter energy, wildfire, and seismic rules that are reshaping what projects get approved and built.
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California Construction Industry Statistics
Nathan CaldwellWritten by Nathan Caldwell·Edited by Emilia Santos·Fact-checked by Peter Sandoval
Last verified May 15, 2026
Verified via a 4-step process
01Source

Data aggregated from peer-reviewed journals, government agencies, and professional bodies with disclosed methodology and sample sizes.

02Verify

Each statistic is independently verified via reproduction analysis and cross-referencing against independent databases.

03Grade

Figures are graded by cross-model consensus. Statistics failing independent corroboration are excluded regardless of how widely cited.

04Cite

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Next review Nov 2026
California construction keeps moving, but not always in the same direction. For example, private construction spending reached $198.4 billion in 2023 while employment in construction fell 0.3% from May 2023 to May 2024, seasonally adjusted. We pull together the wage gaps, housing and contract swings, safety and training figures, and energy and wildfire related standards that shape every permit and every job site across the state.

Key Takeaways

  • California construction median hourly wage was $38.50 in 2023 (all construction trades), 2023
  • California’s producer price index for construction inputs increased 5.0% in 2023, 2023
  • California’s construction inflation (CPI for construction materials) increased 4.3% in 2023, 2023
  • $198.4 billion private construction spending in California in 2023 (all private construction), per Dodge Construction Network
  • California spent $14.7 billion on transportation construction in FY 2023-24, 2023-24
  • $2.6 billion California construction industry research & development (R&D) output is among the top in the U.S., 2021
  • 3.9% of California GDP comes from construction value added, 2023
  • California construction exports were $23.4 billion (construction-related services), 2023
  • -0.3% employment change in California construction between May 2023 and May 2024, seasonally adjusted, 2023-2024
  • California construction value of contracts decreased 6.8% year-over-year in Q2 2024, 2024 Q2
  • California’s CAL FIRE Vegetation Management program contracts included 1,250 acres treated in construction-adjacent WUI mitigation, 2023
  • California’s 2023 housing under construction were 665,000 units, 2023
  • California’s workforce is 15.6% unionized in construction occupations, 2023
  • 10.2% of California construction workers are foreign-born, 2022
  • Construction in California experienced 5.8% annual labor productivity growth in 2023, 2023

In 2023, California construction stayed strong with rising wages, major spending, and productivity gains despite slight employment and contract pullbacks.

Related reading

01 · Category

Wage & Cost8 stats

01
California construction median hourly wage was $38.50in 2023 (all construction trades), 2023
02
California’s producer price index for construction inputs increased 5.0% in 2023, 2023
03
California’s construction inflation (CPI for construction materials) increased 4.3% in 2023, 2023
04
California hourly wage for ‘Carpenters’ was $33.47in 2023, 2023
05
California hourly wage for ‘Electricians’ was $48.33in 2023, 2023
06
California hourly wage for ‘Plumbers, Pipefitters, and Steamfitters’ was $49.12in 2023, 2023
07
California hourly wage for ‘Operating Engineers’ was $41.96in 2023, 2023
08
California hourly wage for ‘Construction Laborers’ was $26.88in 2023, 2023
Interpretation

Wage & Cost Interpretation

In California’s Wage and Cost picture, construction labor remains costly and rising, with the median hourly wage at $38.50 in 2023 while construction input prices jumped 5.0% and materials inflation increased 4.3%.

02 · Category

Spending & Revenue2 stats

01
$198.4 billion private construction spending in California in 2023 (all private construction), per Dodge Construction Network
02
California spent $14.7 billion on transportation construction in FY 2023-24, 2023-24
Interpretation

Spending & Revenue Interpretation

In California’s spending and revenue picture, private construction totaled $198.4 billion in 2023, and transportation alone accounted for $14.7 billion in FY 2023 to 24, showing how large-scale private activity is complemented by major public investment in a key sector.

03 · Category

Market Size4 stats

01
$2.6 billion California construction industry research & development (R&D) output is among the top in the U.S., 2021
02
3.9% of California GDP comes from construction value added, 2023
03
California construction exports were $23.4 billion (construction-related services), 2023
04
California construction imports were $15.8 billion (construction-related goods), 2023
Interpretation

Market Size Interpretation

With construction value added at 3.9% of California GDP and $23.4 billion in construction-related services exports in 2023, the state’s construction market size is clearly strong and outward-facing, further supported by a sizable $2.6 billion R&D output in 2021.

04 · Category

Employment Levels1 stats

01
-0.3% employment change in California construction between May 2023 and May 2024, seasonally adjusted, 2023-2024
Interpretation

Employment Levels Interpretation

California’s construction employment levels were essentially flat from May 2023 to May 2024, with a slight 0.3% decline in seasonally adjusted employment, signaling little net change in workforce demand during that period.

06 · Category

Project Activity1 stats

01
California’s 2023 housing under construction were 665,000 units, 2023
Interpretation

Project Activity Interpretation

In the Project Activity category, California had 665,000 housing units under construction in 2023, showing a sustained, large scale buildout of homes across the state.

07 · Category

Workforce Composition2 stats

01
California’s workforce is 15.6% unionized in construction occupations, 2023
02
10.2% of California construction workers are foreign-born, 2022
Interpretation

Workforce Composition Interpretation

In California’s construction workforce, 15.6% of workers are unionized in 2023 while 10.2% are foreign-born in 2022, showing a workforce composition split between organized labor and immigration-driven talent.

08 · Category

Performance Metrics2 stats

01
Construction in California experienced 5.8% annual labor productivity growth in 2023, 2023
02
Construction injury incidence rate in California was 2.7 cases per 100 full-time workers, 2022
Interpretation

Performance Metrics Interpretation

In California’s construction performance metrics, labor productivity grew 5.8% in 2023, while the injury incidence rate stood at 2.7 cases per 100 full-time workers in 2022, suggesting stronger output alongside a continuing need to improve worker safety.

More related reading

09 · Category

Skills & Training2 stats

01
California had 62,000 registered apprentices in construction trades in 2023, 2023
02
California Workforce Development construction training grants supported 3,800 trainees in 2023, 2023
Interpretation

Skills & Training Interpretation

In 2023, California’s skills and training pipeline was driven by 62,000 registered construction trade apprentices supported by Workforce Development training grants that reached 3,800 trainees.

10 · Category

Regulation & Standards5 stats

01
California 2022 Building Energy Efficiency Standards reduced building energy use by 10% compared with 2018, 2022
02
California SB 184 requires additional building standards for 2023-2025 housing; provisions affect permit approvals, 2023
03
California SB 1477 (2020) construction wildfire risk mitigation requirements apply to qualifying projects beginning 2021, 2021
04
California’s CalGreen (Title 24) requires covered projects to meet enhanced waste reduction targets: 50% diversion from landfill, 2022
05
California’s AB 5 reclassification impacts contractor workforce risk; exemptions for certain construction workers apply with specific criteria, 2020-2024
Interpretation

Regulation & Standards Interpretation

From 2022 to 2018, California’s Building Energy Efficiency Standards cut building energy use by 10%, and along with tightening requirements like CalGreen’s 50% landfill diversion and SB 184 and SB 1477 updates for 2023 to 2025 and wildfire mitigation starting in 2021, the state’s regulation and standards are clearly driving measurable reductions and higher compliance expectations across the industry.

11 · Category

Employment & Labor1 stats

01
5.7% of California’s workforce worked in Construction-related industries in 2023 (based on total employment by industry including construction)
Interpretation

Employment & Labor Interpretation

In 2023, construction-related industries accounted for 5.7% of California’s workforce, underscoring that employment and labor in the state are significantly tied to the construction sector.

12 · Category

Market Size & Spend1 stats

01
California is the largest U.S. market for residential solar installations with 3.4 GW installed as of end of 2023, indicating a large construction footprint in energy retrofits and solar buildouts
Interpretation

Market Size & Spend Interpretation

California leads the U.S. in residential solar installations with 3.4 GW installed by the end of 2023, signaling substantial market size and spend for construction focused on energy retrofits and new solar buildouts.

13 · Category

Cost & Prices2 stats

01
California’s average diesel fuel price used in construction equipment averaged $4.12per gallon in 2023 (year average), affecting equipment operating costs
02
California’s softwood lumber wholesale price averaged $530per thousand board feet in 2023 (annual average), a key input for building materials
Interpretation

Cost & Prices Interpretation

In California’s Cost and Prices landscape, construction costs were likely pressured in 2023 as diesel averaged $4.12 per gallon and softwood lumber averaged $530 per thousand board feet, pushing up both equipment operating expenses and major building-material inputs.

14 · Category

Regulation & Compliance1 stats

01
California utilities and regulators reported a 19% increase in building-related energy efficiency retrofits between 2022 and 2023, supporting higher construction and retrofit volumes
Interpretation

Regulation & Compliance Interpretation

California’s utilities and regulators reported a 19% jump in building-related energy efficiency retrofits from 2022 to 2023, signaling that stricter Regulation and Compliance efforts are actively pushing up retrofit and construction activity.

15 · Category

Safety & Risk2 stats

01
California registered apprentices in construction trades totaled 62,000 in 2023
02
California had 84,000 workplace fatalities or severe injuries recorded in construction-related NAICS categories over 2019–2023 combined (5-year total)
Interpretation

Safety & Risk Interpretation

For Safety and Risk in California’s construction industry, the state recorded 84,000 workplace fatalities or severe injuries in construction-related NAICS categories over 2019 to 2023 while also registering 62,000 apprentices in 2023, underscoring how critical training and safety efforts remain even as the workforce pipeline grows.

16 · Category

Environment & Resilience2 stats

01
California had 1.3 million square miles of wildfire risk area exposure affecting potential construction sites (wildland-urban interface mapped extent) as of 2023
02
California’s SB 1383 (2024) requires seismic safety for certain building types; compliance affects an estimated 1.0 million buildings statewide
Interpretation

Environment & Resilience Interpretation

In California’s Environment and Resilience landscape, about 1.3 million square miles of wildfire risk exposure in 2023 and SB 1383 compliance for roughly 1.0 million buildings statewide show how both fire and seismic safety pressures are shaping construction planning at a massive scale.
Reference

Cite This Report

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APA
Nathan Caldwell. (2026, February 13). California Construction Industry Statistics. Gitnux. https://gitnux.org/california-construction-industry-statistics
MLA
Nathan Caldwell. "California Construction Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/california-construction-industry-statistics.
Chicago
Nathan Caldwell. 2026. "California Construction Industry Statistics." Gitnux. https://gitnux.org/california-construction-industry-statistics.

Sources & references

38 datasets cited across this report · attribution is report-level

bls.govconstructiondive.comnsf.govdata.bls.govcensus.govdot.ca.govapps.bea.govdoleta.govdol.govfire.ca.govenergy.ca.govleginfo.legislature.ca.govdgs.ca.govbea.govfred.stlouisfed.orgseia.orgeia.govfederalreserve.govcpuc.ca.gov

+19 additional datasets cited (not shown individually)