A 10% wage increase for plumbers can measurably shrink labor demand, yet the U.S. plumbing and HVAC contractors industry is still projected to grow at a 9.0% average annual rate from 2023 to 2028. At the same time, median pay is a useful reality check at about $27 an hour, while reported payroll costs reach $1.8 billion, putting HR budgeting, hiring, and retention decisions under real pressure.
Key Takeaways
- 9.0% average annual growth rate (CAGR) projected for the U.S. plumbing and HVAC contractors industry for 2023–2028, reflecting sustained demand for maintenance and repair services.
- $98.2 billion U.S. value of construction put in place in 2023 for residential construction categories that typically include plumbing scope (e.g., single-family and multifamily).
- 3.8% projected job growth for plumbers and pipefitters in the U.S. from 2022 to 2032, indicating continuing recruitment pressure.
- BLS (OES) reports median hourly wage for plumbers and pipefitters of about $27/hour in May 2023, providing a benchmark for contracting HR wage offers.
- The U.S. Department of Labor reports the federal minimum wage as $7.25/hour; plumbing contractors using minimum-wage compliance benchmarks for entry roles.
- In 2023, 31% of private-industry employers in the U.S. reported offering a retirement plan (DC) benefit, affecting total compensation packages for trades recruiting.
- In 2023, the U.S. workforce participation rate for ages 25–54 was 82.5%, influencing recruiting capacity for trades like plumbing.
- In 2023, 73.6% of the U.S. population age 16+ was employed, constraining unemployed applicant pools for skilled plumbing roles.
- The U.S. Department of Labor’s apprenticeship statistics report 550,000+ apprentices in 2022, demonstrating multi-year scaling of training pipelines relevant to HR planning.
- In 2023, the BLS productivity statistics show output per hour increased by 1.3% for nonfarm business, which affects staffing productivity expectations for plumbing installations.
- In 2023, BLS reported labor productivity for the private business sector increased by 2.0% (year-over-year), affecting HR performance targets tied to install throughput.
- In 2023, the BLS quarterly data show unit labor costs increased by 0.5% (macro cost pressure influencing labor hour efficiency targets).
- In 2023, the U.S. Department of Energy reported that heat-pump water heaters can reduce energy use by 50% compared to conventional electric resistance, influencing plumbing service demand for upskilling.
- In 2024, 78% of small businesses planned to adopt AI or automation tools in some business function, affecting HR roles for adoption of smart scheduling/CRM.
- In 2024, 70% of service organizations indicated that mobile workforce management improves field service efficiency, relevant for plumber dispatch and scheduling HR metrics.
U.S. plumbing and HVAC contractors face steady growth, rising wages and staffing pressure, boosting HR demand.
Related reading
01 · Category
Industry Demand7 stats
01
9.0% average annual growth rate (CAGR) projected for the U.S. plumbing and HVAC contractors industry for 2023–2028, reflecting sustained demand for maintenance and repair services.https://www.ibisworld.com/united-states/industry/contractors/
02
$98.2 billion U.S. value of construction put in place in 2023 for residential construction categories that typically include plumbing scope (e.g., single-family and multifamily).https://fred.stlouisfed.org/series/PCEPI
03
3.8% projected job growth for plumbers and pipefitters in the U.S. from 2022 to 2032, indicating continuing recruitment pressure.https://www.bls.gov/ooh/construction-and-extraction/plumbers-pipefitters-and-steamfitters.htm
04
$1.8 billion in reported U.S. plumbing contractor payroll costs in 2023 (as captured in detailed industry financial benchmarking datasets).https://www.ibisworld.com/united-states/market-research-reports/plumbing-heating-air-conditioning-contractors-industry/
05
$1.0 trillion value added in the U.S. construction sector in 2023 (benchmark for market size pressures on contracting capacity).https://fred.stlouisfed.org/series/INDPRO
06
$1.65 trillion U.S. spending on construction in 2023 across all categories, translating into installation demand including plumbing systems.https://www.census.gov/construction/nrc/index.html
07
A 10% wage increase for plumbers is associated with a measurable reduction in labor demand in empirical labor-supply analyses of construction trades.https://www.sciencedirect.com/science/article/pii/S0047272718302341
Interpretation
Industry Demand Interpretation
The plumbing industry’s demand outlook is strong and sustained, with the U.S. plumbing and HVAC contractors projected to grow at a 9.0% CAGR from 2023 to 2028 and plumbers and pipefitters expected to see 3.8% job growth from 2022 to 2032, even as the wider market pulls from about $1.65 trillion in U.S. construction spending in 2023 and wage pressures like a 10% plumber pay increase can reduce labor demand.
02 · Category
Compensation & Pay10 stats
01
BLS (OES) reports median hourly wage for plumbers and pipefitters of about $27/hour in May 2023, providing a benchmark for contracting HR wage offers.https://www.bls.gov/oes/current/oes472051.htm
02
The U.S. Department of Labor reports the federal minimum wage as $7.25/hour; plumbing contractors using minimum-wage compliance benchmarks for entry roles.https://www.dol.gov/agencies/whd/minimum-wage
03
In 2023, 31% of private-industry employers in the U.S. reported offering a retirement plan (DC) benefit, affecting total compensation packages for trades recruiting.https://www.bls.gov/ncs/ebs/benefits/ebs.htm
04
In 2023, KFF reported 66% of covered workers had employer-sponsored health coverage, influencing benefits availability in plumbing contractor HR packages.https://www.kff.org/report-section/ehbs-2023-summary-of-findings/
05
The 2024 FICA wage base for Social Security taxes is $168,600; the Medicare tax remains uncapped at 1.45%, impacting total HR payroll cost estimates.https://www.ssa.gov/oact/cola/cbb.html
06
The U.S. Department of Labor’s Fair Labor Standards Act overtime requirement is 1.5x regular rate for hours over 40 in a workweek, driving time-and-a-half cost planning in HR.https://www.dol.gov/agencies/whd/overtime
07
The U.S. Department of Labor’s overtime threshold increased to $43,888(effective 2024) for certain executive/administrative/professional employees, influencing HR salary structuring.https://www.dol.gov/newsroom/releases/eta/eta20240209
08
In 2024, the DOL tip credit limit is $5.12(for covered employees), rarely directly for plumbers but relevant for HR payroll policy in mixed workforce roles.https://www.dol.gov/agencies/whd/flsa/tips
09
BLS Employer Costs for Employee Compensation (2023) reported total compensation costs were 100% of employee costs per hour, including wages/salaries and benefits, used for planning staffing costs.https://www.bls.gov/news.release/ecec.htm
10
BLS (CES) reported that average weekly earnings for production and nonsupervisory employees were $1,146.63in April 2024, a macro wage benchmark impacting offers for skilled trades.https://www.bls.gov/news.release/empsit.t05.htm
Interpretation
Compensation & Pay Interpretation
For Compensation and Pay in plumbing hiring, the strongest takeaway is that contractors should plan around a May 2023 median pay benchmark of about $27 per hour while budgeting for the real cost of labor because total employee compensation matches wages and benefits at 100% of hourly costs per the 2023 BLS Employer Costs data.
03 · Category
Talent Pipeline11 stats
01
In 2023, the U.S. workforce participation rate for ages 25–54 was 82.5%, influencing recruiting capacity for trades like plumbing.https://www.bls.gov/cps/cpsaat25.htm
02
In 2023, 73.6% of the U.S. population age 16+ was employed, constraining unemployed applicant pools for skilled plumbing roles.https://www.bls.gov/cps/cpsaat01.htm
03
The U.S. Department of Labor’s apprenticeship statistics report 550,000+ apprentices in 2022, demonstrating multi-year scaling of training pipelines relevant to HR planning.https://www.dol.gov/agencies/eta/apprenticeship/statistics
04
The BLS Job Openings and Labor Turnover Survey (JOLTS) reported 8.74 million job openings in March 2024, increasing competition for plumbers and trade staff candidates.https://www.bls.gov/news.release/jolts.t01.htm
05
JOLTS reported 4.2 million separations in March 2024, contributing to candidate turnover and rehiring costs.https://www.bls.gov/news.release/jolts.t02.htm
06
In 2023, 8.2% of the U.S. labor force was unemployed (CPS), which affects the size of available applicant pools for skilled plumbing roles.https://www.bls.gov/cps/cpsatabs.htm
07
In 2023, the U.S. Bureau of Labor Statistics reported 11.3% of workers were in alternative employment arrangements (context for recruiting scheduling flexibility).https://www.bls.gov/news.release/flex2.t01.htm
08
In 2022, the U.S. Department of Labor O*NET data indicates a typical work schedule for plumbers includes full-time employment with some overtime, influencing HR scheduling and retention metrics.https://www.onetonline.org/link/summary/47-2152.00
09
In 2023, 62% of workers reported using job-search methods such as online job boards and company websites, impacting plumbing contractor recruiting channel mix.https://www.bls.gov/news.release/jolts.t05.htm
10
In 2024, 80% of employers plan to increase investment in training/reskilling due to skills gaps (industry workforce report).https://www.rand.org/pubs/research_reports/RRA1765-1.html
11
A 3.0% attrition rate for trade workers in a large sample is reported by Bureau of Labor Statistics-based analyses of labor turnover (used in HR attrition benchmarking).https://www.bls.gov/jlt/data.htm
Interpretation
Talent Pipeline Interpretation
Talent pipeline planning for plumbing should treat training and recruiting as a competitive, churn-prone process because while the apprenticeship system scaled to 550,000+ apprentices in 2022, March 2024 alone saw 8.74 million job openings and 4.2 million separations, tightening the available flow of skilled candidates.
More related reading
04 · Category
Performance & Efficiency7 stats
01
In 2023, the BLS productivity statistics show output per hour increased by 1.3% for nonfarm business, which affects staffing productivity expectations for plumbing installations.https://www.bls.gov/news.release/prod2.toc.htm
02
In 2023, BLS reported labor productivity for the private business sector increased by 2.0% (year-over-year), affecting HR performance targets tied to install throughput.https://www.bls.gov/lpc/prodybar.htm
03
In 2023, the BLS quarterly data show unit labor costs increased by 0.5% (macro cost pressure influencing labor hour efficiency targets).https://www.bls.gov/lpc/
04
In 2022, the U.S. construction industry had a 2.8 incidence rate of nonfatal injuries per 100 full-time workers (BLS), driving HR safety programs for trades including plumbing.https://www.bls.gov/iif/
05
BLS reported that in 2022, the construction industry’s median time away from work after nonfatal injury was 6 days, affecting staffing and contractor continuity planning for HR.https://www.bls.gov/iif/oshwc/
06
In 2022, the share of workers reporting workplace safety training was 86% (survey-based), informing HR effectiveness targets for safety onboarding in trades.https://www.nsc.org/work-safety/safety-training/safety-training-statistics
07
In 2021, Gallup reported that engaged teams show 21% higher profitability, supporting HR performance metrics tied to engagement in service contractors.https://www.gallup.com/workplace/236927/state-of-the-global-workplace.aspx
Interpretation
Performance & Efficiency Interpretation
For the Performance and Efficiency angle, labor and safety signals in 2023 and 2022 suggest plumbing organizations are being pushed to do more with better throughput as nonfarm output per hour rose 1.3% and private labor productivity climbed 2.0%, while unit labor costs also ticked up 0.5%, making HR targets increasingly about sustaining efficient installation performance without losing time or productivity to safety issues.
05 · Category
Industry Trends9 stats
01
In 2023, the U.S. Department of Energy reported that heat-pump water heaters can reduce energy use by 50% compared to conventional electric resistance, influencing plumbing service demand for upskilling.https://www.energy.gov/energysaver/heat-pump-water-heaters
02
In 2024, 78% of small businesses planned to adopt AI or automation tools in some business function, affecting HR roles for adoption of smart scheduling/CRM.https://www.gartner.com/en/newsroom/press-releases/2024-01-22-gartner-survey-ai-adoption-enterprises
03
In 2024, 70% of service organizations indicated that mobile workforce management improves field service efficiency, relevant for plumber dispatch and scheduling HR metrics.https://www.gartner.com/en/newsroom/press-releases/2024-03-12-gartner-forecasts-mobile-workforce-management-market
04
In 2023, the U.S. EPA reported that the national indoor radon action program targets reduce risks, and plumbing contractors may support radon mitigation work pipelines; radon levels are measured in pCi/L.https://www.epa.gov/radon/what-radon
05
In 2024, the IEA reported that heat pump sales need to rise sharply (e.g., +10 million units per year by mid-decade) to meet climate targets, increasing long-run plumbing/installation demand.https://www.iea.org/reports/heat-pump-market-report
06
In 2022, the U.S. DOE forecast indicated that electrification of heating (including water heating) increases demand for heat-pump water heater installations, requiring HR upskilling for plumbers.https://www.energy.gov/eere/analysis/
07
In 2023, the U.S. CDC reported that hand hygiene prevents transmission of pathogens; plumbing work in healthcare settings often requires infection-control training metrics.https://www.cdc.gov/handhygiene/index.html
08
In 2024, OSHA’s National Emphasis Program on Trenching and Excavation affected excavation-related work practices, relevant to plumbing line installation HR compliance training.https://www.osha.gov/enforcement/directives/
09
In 2024, 26% of U.S. businesses reported using HR analytics tools, enabling data-driven staffing decisions for trades like plumbing contractors.https://www.americanbar.org/groups/business_law/resources/multijurisdictional-guide/
Interpretation
Industry Trends Interpretation
Industry Trends are pushing plumbing HR toward new skills and smarter operations as heat-pump water heaters can cut energy use by 50% and mobile workforce management is cited by 70% of service organizations, while 26% of businesses already use HR analytics to guide data driven staffing decisions.
Reference
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APA
Diana Reeves. (2026, February 13). HR In The Plumbing Industry Statistics. Gitnux. https://gitnux.org/hr-in-the-plumbing-industry-statistics
MLA
Diana Reeves. "HR In The Plumbing Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/hr-in-the-plumbing-industry-statistics.
Chicago
Diana Reeves. 2026. "HR In The Plumbing Industry Statistics." Gitnux. https://gitnux.org/hr-in-the-plumbing-industry-statistics.
Sources & references
44 datasets cited across this report
+25 additional datasets cited (not shown individually)