Analysis: Construction Sector Outpaces Economy in Employment, Wages for 2024

Posted January 14, 2025

An analysis from the Associated General Contractors of America shows the construction sector has increased by 8,000 positions in December with contractors expecting to increase their headcounts in 2025.

Construction employment in December was 8,316,000, an increase of 8,000 from November. Headcount climbed by 196,000 jobs, 2.4 percent, during 2024, above the 1.4 percent gain in total nonfarm employment.

In 2024, employment at nonresidential contractors increased by 3.0 percent or 145,300, while residential construction employment rose by 1.5 percent or 51,000 jobs. Construction wages also rose by 4.2 percent in 2024 to $36.44 in December. Last month the ACG noted construction employment increased in 234, 65 percent, of 358 metro areas between November 2023 and November 2024 and reported contractors in these areas could struggle to find enough qualified workers in 2025. 

According to the 2025 Construction Hiring and Business Outlook Survey from the AGC, most contractors are optimistic about demand for projects and increased headcounts in 2025. The survey gathered responses from contractors across 20 states including Missouri and Kansas.

Out of 30 respondents, 77 percent of Missouri contractors expect headcounts to increase while only 3 percent anticipate a decrease.

The survey also asked what projects contractors expect to see a value change in compared to 2024. In Missouri, 75 percent of contractors expect water and sewage projects to increase in value followed by data centers by 61 percent and healthcare facilities by 48 percent.

The Kansas survey gathered responses from 27 contractors. In Kansas, 70 percent of contractors expect headcounts to increase but 11 percent anticipate a decrease. In Kansas, 62 percent of contractors expect data center projects to increase in value followed by bridge and highway projects by 56 percent and transportation by 50 percent.