US job market records solid growth for third consecutive month
The US economy recorded solid employment growth in May for the third consecutive month.
When it comes to pay rises, construction is the ‘IT’ career of the year, new research has revealed.
An analysis of payroll transaction data by human resources and payroll firm ADP shows that since August 2023, salaries for construction workers have outpaced all industries every month, except for February and March 2026, when salaries for natural resources workers temporarily spiked. The review looked at more than 14.8 million independent workers over a 12-month period.
Salary growth for job-changers in the construction industry rose 12.9% year-on-year in June, faster than in any other industry. The median gross salary for the month was more than $59,100, compared to an average of $43,200 for all career changers, according to ADP.
At a time when people are worrying and questioning the price of a university education, analysis shows that professional deals can also be lucrative.
Nella Richardson, chief economist and head of research at ADP, said: “The biggest pay rises so far this year have come from people moving into the construction industry, proving that investing in specialized trade skills can be another valuable gateway to making big bucks.” “Professionals are the ‘IT’ careers of the year in terms of pay.”
What is driving up wages in the construction industry?
ADP says it’s a simple matter of supply and demand.
Since at least 2014, construction employment growth has outpaced overall employment growth. From 2014 to 2024, construction had the largest job increase outside of the large trade, transportation and utility categories, which include retail workers and truck drivers, according to data from the Bureau of Labor Statistics.
Despite these job increases, more workers are still needed on construction sites, Richardson said. As a result, “with a limited workforce, (construction) workers have the power to dictate significant salary increases when changing jobs,” she said.
Why is there a shortage of construction workers?
A lack of new entrants amid the data center boom is contributing to the construction worker shortage, according to ADP.
Older workers have supported the construction industry for years, according to ADP data. Since January 2020, the average age of electricians, plumbers, carpenters, and HVAC professionals has fallen by five years, while the age of American workers has fallen by just one year. The decline in the average age is due to older workers leaving the profession, increasing the strain on the industry, ADP said.
Additionally, although data centers make up less than 2% of the construction industry, these projects have a significant “halo effect,” increasing spillover demand for the housing and infrastructure workforce, according to the American Institute of Architects. Brookings, a nonpartisan think tank, estimated in May that data centers contributed to an 11% increase in local construction employment over five to six years.
What will construction workers do next?
The employment boom and rising salaries for construction workers are likely to continue, with more apprenticeship and trade programs for those wanting to enter the industry, ADP said.
“Construction workers are in high demand, and even private companies outside the industry are creating apprenticeships and training programs to fill gaps,” Richardson said. “There is early evidence that these efforts are attracting new workers. The proportion of new construction jobs, or those hired in the past three months, is rising.”
From 2019 to 2025, new jobs accounted for 3.6% of employment, according to ADP data. So far this year, the share of new hires in the industry has increased by 1 percentage point to 4.6%.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
