Construction Wage Growth Remains Moderate—But Not in All States

Nationwide wage growth in the construction industry slowed in April, but pay scales continue to vary in every region of the country. On average, construction workers in April earned $39.30 per hour, which is a 3.6% increase from the previous year, according to the National Association of Home Builders, which cites data from the U.S. Bureau of Labor Statistics. However, state-level changes ranged widely, with Nevada seeing a 10.6% jump in wages, while Oklahoma experienced a 3% drop.

The highest average wages are found in Alaska, states along the Pacific Coast, Illinois, Minnesota, and much of the Northeast. Fourteen of these states reported average hourly construction wages above $40 per hour, with Alaska and Massachusetts topping $50 per hour.

Meanwhile, nine states—primarily in the South—reported average wages below $34 per hour. Averaging $29.30 per hour, Arkansas has the lowest hourly wages.

While differences in regional hourly rates reflect variation in the cost of living across states among other things, the faster growing wages are more likely to indicate specific labor markets that are particularly tight. Year-over-year, Nevada, Mississippi, Alaska, Colorado, Texas, Florida, South Carolina, and Montana reported fastest growing hourly wages in construction, more than doubling the national average growth of 3.6%. Nevada reported the largest annual increase of 10.6%, while the growth rate in Mississippi and Alaska was just under 10%.

In sharp contrast, Oklahoma registered a decline in hourly wages of 3%. Five other states reported modestly declining hourly rates in construction, compared to a year ago – Louisiana, Missouri, Rhode Island, California, and Wisconsin.