Construction-sector employment increased by 8,000 positions in December as the industry’s headcount and wages in 2024 both rose faster than in the broader economy, according to an analysis of new government data the Associated General Contractors of America released on Jan. 10. Association officials noted that most contractors are optimistic about demand for projects and expect to continue adding employees in 2025, according to a new survey the association recently released.

“While construction job gains have slowed lately, the industry is still adding workers at a stronger clip than the broader economy,” said Ken Simonson, the association’s chief economist. “Construction employment should grow faster in 2025, assuming contractors can find enough qualified workers to meet demand.”

Construction employment in December totaled 8,316,000, seasonally adjusted, an increase of 8,000 from November. Headcount climbed by 196,000 jobs, or 2.4 percent, during 2024 as a whole, well above the 1.4 percent gain in total nonfarm employment. In 2024, employment at nonresidential contractors increased by 3 percent, or 145,300, while residential construction employment rose by 1.5 percent, or 51,000 jobs.

The average hourly wage for production and nonsupervisory employees in construction rose by 4.2 percent in 2024 to $36.44 in December. The year-over-year increase exceeded the 3.8 percent gain in the overall private sector, while the industry’s average wage in December topped the private-sector average by 19 percent.

The 2025 Construction Hiring and Business Outlook Survey, which the association conducted with Sage and released on Jan. 8, found that 69 percent of the 1,100 responding contractors expect to add to their headcount in 2025. Further, on balance, they expect opportunities to expand compared to 2024 for 15 out of 17 project types included in the survey.

The most widespread optimism focused on data-center construction. Contractors were also broadly upbeat about the prospects for water and sewer construction, power projects, transportation facilities, manufacturing plants, health care, and bridge and highway work. The only categories for which expectations of shrinking demand slightly outweighed rising demand were private-office and retail construction.

The survey results indicate, however, that contractors remain deeply concerned about workforce issues and the potential impact of threatened tariffs on material prices. Association officials said that they are urging the incoming Trump administration to make sure any new tariffs do not impact the cost of materials needed for vital infrastructure and economic development projects. They also urged Washington officials to invest in construction education and training programs and expand lawful opportunities for people to enter the country and work in construction.

“Construction activity is the physical proxy for economic growth,” said Jeffrey D. Shoaf, the association’s chief executive officer. “If contractors don’t have the workers they need or can’t afford the materials required, construction – and, as a result, economic activity – will take longer and cost more than it does today.