From its towering $2.1 trillion in spending to the 696,000 jobs it couldn't fill, the U.S. construction industry in 2023 was a powerhouse of economic activity, persistent labor challenges, and a tragic safety record that demands a closer look.
Key Takeaways
- In 2023, the U.S. construction industry employed 8,046,000 workers, accounting for 5.0% of total nonfarm payroll employment according to BLS data.
- Construction sector added 136,000 jobs in 2023, with average hourly earnings rising 4.8% year-over-year to $34.23.
- As of Q4 2023, there were 696,000 construction job openings, with a job openings rate of 8.1% in the industry.
- In 2023, the U.S. construction industry generated $1.8 trillion in total value added, representing 7.6% of GDP.
- Construction sector revenue reached $1.67 trillion in 2022 per U.S. Census Bureau data.
- Gross output from construction was $2.1 trillion in 2022, up 8.4% from 2021 according to BEA.
- Total construction spending reached $2.1 trillion in 2023, up 7.5% from 2022.
- Private residential construction spending was $908 billion in 2023, 11% above 2022 levels.
- Nonresidential building construction put in place $238 billion in Q4 2023.
- Total fatal work injuries in construction numbered 1,056 in 2022, a rate of 9.6 per 100,000 full-time workers.
- Construction had the highest fatal injury rate among major industries at 13.9 per 100,000 in 2022.
- Falls to lower level caused 391 construction fatalities in 2022, 37% of total.
- U.S. construction industry expected to grow 4% annually through 2030, adding $1.4 trillion in output.
- Prefabricated construction market projected to reach $250 billion by 2030, CAGR 6.8%.
- Green building projects to comprise 90% of new nonresidential construction by 2025 per Dodge.
The U.S. construction industry is strong but faces persistent labor shortages and safety challenges.
Construction Spending and Output
1Total construction spending reached $2.1 trillion in 2023, up 7.5% from 2022.
Verified2Private residential construction spending was $908 billion in 2023, 11% above 2022 levels.
Verified3Nonresidential building construction put in place $238 billion in Q4 2023.
Verified4Highway construction spending hit $57.8 billion in 2023, up 4.2% year-over-year.
Directional5Single-family housing starts totaled 954,000 units in 2023, down 8% from 2022.
Single source6Multifamily completions reached 372,000 units in 2023 per Census Bureau.
Verified7Public construction spending grew 12.6% to $442 billion in 2023.
Verified8Manufacturing construction put in place $91 billion in 2023, up 70% since 2021.
Verified9Total housing permits issued 1.41 million units in 2023.
Directional10Educational construction spending was $102 billion in 2023, flat from prior year.
Single source11Water supply and sewage construction hit record $44.5 billion in 2023.
Verified12Commercial and office construction spending declined 15% to $120 billion in 2023.
Verified13Power plant construction spending rose 20% to $65 billion in 2023.
Verified14New privately-owned housing units under construction totaled 1.04 million in Q4 2023.
Directional15Heavy and civil engineering construction spending $198 billion in 2023, up 9%.
Single source16Hotel/motel construction put in place $28 billion in 2023, down 5%.
Verified17Amusement/recreation construction spending $12.4 billion in Q4 2023 annualized.
Verified18Private nonresidential construction spending $467 billion in 2023.
Verified19Residential improvements spending $460 billion in 2023, up 5%.
Directional20Air traffic facility construction $2.8 billion annualized Q4 2023.
Single source21Religious building construction $4.1 billion in 2023.
Verified22Conservation/development spending $18.2 billion in Q4 2023.
Verified23Single-family permits 954,000 in 2023, 5-family+ 440,000.
Verified24Healthcare construction $68 billion in 2023.
Directional25Oil/gas field construction down 20% to $12 billion in 2023.
Single source26Total starts for nonresidential buildings 1.2 billion sq ft in 2023 Dodge.
Verified27Warehouse/industrial construction $142 billion in 2023 peak.
Verified28Public school/university construction $95 billion in 2023.
Verified29Rental vacancy rate influenced 250,000 multifamily starts in 2023.
Directional30Construction spending per capita $6,300 in 2023.
Single source31Excavation/site prep spending $82 billion in 2023.
VerifiedConstruction Spending and Output Interpretation
The construction industry is staging a massive, $2.1 trillion pivot where we're feverishly building the factories, roads, and power plants of the future while single-family homes take a cautious breather and commercial offices sulk in the corner.
Employment Statistics
1In 2023, the U.S. construction industry employed 8,046,000 workers, accounting for 5.0% of total nonfarm payroll employment according to BLS data.
Verified2Construction sector added 136,000 jobs in 2023, with average hourly earnings rising 4.8% year-over-year to $34.23.
Verified3As of Q4 2023, there were 696,000 construction job openings, with a job openings rate of 8.1% in the industry.
Verified4Women represented 10.9% of the construction workforce in 2022, up from 9.9% in 2018 per BLS Occupational Employment Statistics.
Directional5Hispanic or Latino workers comprised 30.1% of construction employment in 2023, the highest share among major industry sectors.
Single source6Construction managers numbered 507,430 in 2022 with median annual wage of $104,900 according to BLS OES data.
Verified7In 2023, the quits rate in construction was 2.6% while the layoffs rate was 1.2%, both below the all-industry averages.
Verified8Self-employed workers made up 20.3% of construction employment in 2022, totaling about 1.6 million individuals.
Verified9Construction added 200,000 net new jobs from January to October 2023, with residential building leading at 92,000 gains.
Directional10Average construction worker age was 42.7 years in 2022, older than the all-industry average of 41.9 years per BLS.
Single source11Union membership rate in construction was 12.6% in 2023, down from 13.2% in 2022 according to BLS union data.
Verified12Carpenters held 677,000 jobs in 2022 with median wage of $51,970, per BLS Occupational Outlook Handbook.
Verified13Construction employment in California reached 922,000 in September 2023, the highest among all states.
Verified14Labor force participation rate for construction workers aged 25-54 was 83.4% in 2023.
Directional15Electricians in construction numbered 596,000 in 2022 with projected 6% growth to 2032.
Single source16Construction unemployment rate averaged 4.2% in 2023, below the national rate of 3.6%.
Verified17Operating engineers and heavy equipment operators totaled 403,000 jobs in 2022.
Verified18In metro areas, construction employment grew 3.2% year-over-year in Q3 2023, adding 92,000 jobs.
Verified19Construction laborers employment reached 939,000 in 2022 with median wage $39,520.
Directional20Veteran employment in construction was 12.4% of the workforce in 2022, higher than all industries average.
Single source21In 2023, Texas led with 786,000 construction workers, followed by Florida at 543,000.
Verified22Plumbers, pipefitters, and steamfitters employment was 449,000 in 2022.
Verified23Construction employment growth was strongest in the South region at 4.1% in 2023.
Verified24Median weekly earnings for construction workers were $1,050 in Q4 2023.
Directional25Drywall installers and finishers totaled 118,000 jobs in 2022.
Single source26Construction job growth slowed to 17,000 monthly average in H2 2023.
Verified27Painters and paperhangers employment reached 372,000 in 2022.
Verified28Construction sector had 4.1% unemployment rate in December 2023.
Verified29Sheet metal workers numbered 146,000 in construction in 2022.
Directional30Construction payroll employment up 2.5% year-over-year in 50 largest metros Q3 2023.
Single sourceEmployment Statistics Interpretation
While the nation's economic engine might be glued together with power tools and plastered with promise, the construction industry itself is a complex job site where demographic shifts, persistent demand, and a generational hand-off are all competing for space on the same scaffold.
Financial and Economic Metrics
1In 2023, the U.S. construction industry generated $1.8 trillion in total value added, representing 7.6% of GDP.
Verified2Construction sector revenue reached $1.67 trillion in 2022 per U.S. Census Bureau data.
Verified3Gross output from construction was $2.1 trillion in 2022, up 8.4% from 2021 according to BEA.
Verified4Average profit margin for construction firms was 3.5% in 2023, per AGC annual survey.
Directional5Construction industry paid $259 billion in wages in 2022, 6.1% of national total payroll.
Single source6Multifamily construction contributed $109 billion to GDP in 2022 per NAHB analysis.
Verified7Interest expenses for construction firms rose 28% to $22 billion in 2023 due to higher rates.
Verified8Construction sector's share of private fixed investment was 5.8% in 2023 at $248 billion.
Verified9Average construction firm revenue was $12.4 million in 2023 per ABC data.
Directional10Taxes on production and imports in construction totaled $78 billion in 2022.
Single source11Construction inflation rate (PPI) averaged 4.2% in 2023, driven by 6.1% rise in inputs.
Verified12Bonded construction backlog for firms averaged 10.2 months of work in Q4 2023.
Verified13Construction firms' cash flow margin improved to 2.8% in 2023 from 1.9% in 2022.
Verified14Employee benefits costs averaged 28.4% of payroll in construction in 2023 per AGC.
Directional15Overhead costs as percent of revenue were 12.6% for construction firms in 2023.
Single source16Construction purchasing managers index (CPI) averaged 52.3 in 2023, indicating expansion.
Verified17In 2022, construction gross output was $2.14 trillion per BEA input-output tables.
Verified18Construction firms reported average backlog of $32 million in 2023 AGC survey.
Verified19Fuel and power costs rose 15% for contractors to 4.2% of revenue in 2023.
Directional20Construction contributed $1.07 trillion to GDP in 2023 Q4 annualized.
Single source21Average construction loan interest rate was 7.2% in Q4 2023.
Verified22Subcontractor profit margin averaged 5.1% in 2023 per ABC.
Verified23Construction equipment rental revenue hit $52 billion in 2023.
Verified24Insurance costs averaged 1.8% of revenue for construction firms in 2023.
Directional25Construction productivity grew 1.2% in 2022, lagging overall nonfarm at 1.7%.
Single source26General contractors' gross margin was 14.7% in 2023 ABC data.
Verified27Construction sector imported $15 billion in goods in 2022 per Census trade data.
Verified28Debt-to-equity ratio for construction firms averaged 1.2:1 in 2023.
VerifiedFinancial and Economic Metrics Interpretation
Despite fueling the nation's economy with over a trillion dollars in activity and millions of jobs, the U.S. construction industry is operating on a razor-thin margin, where a single percentage point swing in interest rates can slice right through its concrete-thick profits.
Industry Trends and Forecasts
1U.S. construction industry expected to grow 4% annually through 2030, adding $1.4 trillion in output.
Verified2Prefabricated construction market projected to reach $250 billion by 2030, CAGR 6.8%.
Verified3Green building projects to comprise 90% of new nonresidential construction by 2025 per Dodge.
Verified4Labor shortage expected to leave 500,000 construction jobs unfilled by 2026 AGC forecast.
Directional5Modular construction adoption up 25% since 2020, projected 10% market share by 2030.
Single source6Data center construction spending forecasted at $100 billion annually by 2025.
Verified7BIM usage in construction firms rose to 73% in 2023 from 61% in 2020.
Verified8Renewable energy construction to add 300,000 jobs by 2030 per DOE projections.
Verified9Construction robotics market to grow at 15% CAGR to $10 billion by 2028.
Directional10Semiconductor fab construction boom to peak at 50 million sq ft in 2025.
Single source11Supply chain disruptions expected to impact 40% of projects through 2025.
Verified12Digital twin adoption forecasted to save $1.2 trillion in megaprojects by 2030.
Verified13Infrastructure bill to fund $550 billion in new construction spending over 5 years.
Verified143D printing in construction projected to grow 100% CAGR to 2028.
Directional15EV charging station construction to reach 500,000 units by 2030.
Single source16AI in construction management market to hit $5 billion by 2027.
Verified17Shortage of skilled trades projected to worsen with 41% of workforce over 45.
Verified18Net-zero building retrofits to drive $1 trillion market by 2030.
Verified19Construction employment forecasted to reach 9 million by 2032, up 4%.
Directional20Construction drones usage up 50% to 20% of firms in 2023.
Single source21Carbon emissions from construction to drop 40% by 2030 with electrification.
Verified22Warehouse construction to decline 30% in 2024 after 2023 peak.
Verified23Skilled labor demand up 20% for EV infrastructure by 2030.
Verified24VR/AR training adoption in construction to reach 50% by 2027.
Directional25Hyperscale data centers 40 million sq ft under construction Q1 2024.
Single source26Sustainable materials use up to 45% in new projects 2023.
Verified27Construction spending forecast $2.3 trillion by 2028.
Verified28Offsite construction to save 20-30% time on 25% projects by 2030.
Verified29Cybersecurity incidents in construction up 300% since 2020.
DirectionalIndustry Trends and Forecasts Interpretation
The American construction industry, caught between a relentless drive toward a high-tech, sustainable future and the very human, hammer-swinging reality of not having enough hands to swing them, is frantically trying to build its way out of a labor crisis while robots draft the blueprints and drones monitor the progress.
Safety and Injury Rates
1Total fatal work injuries in construction numbered 1,056 in 2022, a rate of 9.6 per 100,000 full-time workers.
Verified2Construction had the highest fatal injury rate among major industries at 13.9 per 100,000 in 2022.
Verified3Falls to lower level caused 391 construction fatalities in 2022, 37% of total.
Verified4Struck by object or equipment incidents led to 151 construction deaths in 2022.
Directional5Nonfatal injury and illness incidence rate in construction was 2.0 cases per 100 workers in 2022.
Single source6Musculoskeletal disorders accounted for 29% of nonfatal construction injuries in 2022.
Verified7OSHA cited construction firms for 21,479 violations in FY2023, with fall protection top at 5,901.
Verified8Heat-related fatalities in construction reached 38 in 2022, up from 20 in 2021 per NIOSH.
Verified9Days away from work cases in construction averaged 8 days per case in 2022.
Directional10Electrical fatalities in construction totaled 76 in 2022, 7% of industry total.
Single source11Construction firms with 11-19 employees had injury rate of 1.8 per 100 workers in 2022.
Verified12Vehicle-related incidents caused 106 construction fatalities in 2022.
Verified13Silica exposure violations numbered 1,243 in construction by OSHA in FY2023.
Verified14Lost workday case rate in roofing contractors was 4.2 per 100 workers in 2022.
Directional15Opioid-related fatalities in construction were 15% of total workplace drug deaths in 2022.
Single source16Trench collapse deaths totaled 15 in construction in 2022 per BLS.
Verified17Construction safety training compliance was 92% among large firms in 2023 AGC survey.
Verified18Recordable incident rate for ABC members was 1.2 in 2023, below national average.
Verified19Eye injuries accounted for 1,200 nonfatal cases in construction in 2022.
Directional20Crane-related fatalities dropped to 19 in 2022 from 32 in 2021.
Single source21Nonfatal construction injuries totaled 151,000 in 2022 with 122,600 involving days away.
Verified22Leading cause of nonfatal injuries was overexertion at 25% in construction 2022.
Verified23OSHA construction inspections totaled 18,200 in FY2023.
Verified24Hand injuries 18% of construction nonfatal cases in 2022.
Directional25Construction fatality rate for workers 55+ was 12.1 per 100k in 2022.
Single source26Scaffolding violations 2,800 by OSHA in construction FY2023.
Verified27Median days away for construction sprains/strains 12 days in 2022.
Verified28Contact with objects/equipment caused 44% nonfatal injuries in 2022.
Verified29Ladder-related falls led to 113 fatalities in construction 2022.
Directional30Respiratory illnesses 1,200 cases in construction SOII 2022.
Single source31Large construction firms (1,000+ employees) injury rate 1.1 per 100 in 2022.
Verified32Caught-in/between incidents 28 fatalities in construction 2022.
Verified33Hearing loss cases 1,800 in construction with days away 2022.
VerifiedSafety and Injury Rates Interpretation
While every statistic here screams for basic safety measures—from fall protection to opioid awareness—the fact that falls alone kill a person per day in construction tragically proves we’re still failing to address the glaringly obvious.
Sources & References
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