Graph and download economic data for Unemployment Level - Construction Industry, Private Wage and Salary Workers (LNU03032231) from Jan 2000 to Feb 2025 about salaries, workers, private industries, 16 years +, construction, wages, household survey, private, unemployment, industry, and USA.

The Report On the North American Construction Market is Segmented by Country (Canada and the United States), Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction), and Construction Type (Additions and Demolition and New Construction). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

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US Commercial Construction Market Size 2025-2029

The us commercial construction market size is forecast to increase by USD 191 billion billion at a CAGR of 2.7% between 2024 and 2029.

The Commercial Construction Market in the US is experiencing significant growth driven by the increasing trend towards sustainable building practices and the emergence of smart cities. Green buildings, which incorporate energy-efficient designs and renewable energy sources, are gaining popularity due to their environmental benefits and cost savings over the long term. This trend is expected to continue as more businesses prioritize sustainability and energy efficiency in their operations. However, the market also faces challenges, most notably the lack of skilled labor in the construction industry. The industry's aging workforce and a decline in new entrants have created a labor shortage, leading to delays and increased costs for construction projects. To mitigate this challenge, companies are exploring innovative solutions such as modular construction and automation technologies to streamline processes and reduce reliance on manual labor. In , the US Commercial Construction Market presents significant opportunities for growth, particularly in the area of sustainable building practices and smart city development. However, companies must also address the challenge of the labor shortage by adopting new technologies and innovative construction methods to remain competitive and deliver projects on time and on budget. By staying informed of these trends and challenges, businesses can effectively capitalize on market opportunities and navigate challenges in the ever-evolving construction landscape.

What will be the size of the US Commercial Construction Market during the forecast period?

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The commercial construction market in the US continues to exhibit activity, driven by the demand for new office buildings, retail spaces, outdoor leisure facilities, and mixed-use developments. Urbanization and infrastructure development programs are significant growth areas, fueling the need for renovation and retrofitting of existing structures, as well as urban regeneration projects. Energy-saving designs and water infrastructure are key trends, with a focus on reducing costs through efficient building materials and product lead times. The non-residential building market is experiencing cost escalation due to fluctuating material prices, particularly for building materials like lumber, and labor shortages, exacerbated by a shrinking labor force. Despite these challenges, investments in commercial construction remain strong, reflecting the market's ongoing importance to the US economy.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. SectorPrivate constructionPublic constructionTypeBuildingOthersEnd-userOffice buildingsRetail spacesHotels and hospitalityHealthcare facilitiesOthersGeographyUS

By Sector Insights

The private construction segment is estimated to witness significant growth during the forecast period.

The US commercial construction market encompasses the development of various structures, including office buildings, retail establishments, outdoor leisure facilities, and urban infrastructure projects. Notable initiatives in this sector include the construction of the El Paso VA Health Care Center in Fort Bliss, celebrated in August 2024, and the Skymark Reston Town Center, the tallest residential tower in the Capital Region, topped out in October 2023. These projects contribute to the expansion of the market, with a focus on mixed-use developments, infrastructure building, and energy-saving designs. However, challenges such as cost escalation due to fluctuating material prices, labor shortages, and infrastructure development programs require careful planning and management. Key areas of investment include public transportation, broadband internet, electric grid reconstruction, water infrastructure, and multifamily housing. Operational efficiency, service delivery, and safety are essential functional areas in the non-residential building market. Technological advancements in communication linkages, data and communication, and EV units are transforming the industry.

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The Private construction segment was valued at USD 1313.50 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advant

The Report Covers US Commercial Building Construction Industry Statistics & Growth. The Market is Segmented by End User (Office Building Construction, Retail Construction, Hospitality Construction, Institutional Construction, and Others). The market size and forecasts are provided in terms of value (USD billion) for all the above segments.

Expert industry market research on the Industrial Building Construction in the US (2005-2030). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

The construction sector employed almost 8.3 million people in the United States in January 2025, which was the highest number since the 21st century. There is a strong correlation between the amount of investment in construction and demand for workers. For example, in the years following the 2008 financial crisis, the value of new construction put in place in the U.S. decreased, which also translated in lower employee numbers in the construction sector. How to improve the job shortage? Many contractors have reported difficulty finding skilled workers recently. However, that has not only been the case in the construction industry, but in many other sectors of the economy too. For example, U.S. restaurants reported shortages in different positions in the past years. Although there are many reasons why workers may quit, in general, an increase in the salaries of construction employees may help in reducing the number of resignations. Worker shortages in Europe The United States is not the only country where companies have been facing these challenges. Thus, the percentage of French infrastructure companies reporting staff shortage peaked in 2019 and 2023. However, there are certain industries that struggle finding new employees more than construction. Social and care work had the highest skilled labor shortages in Germany.

Spain Business Survey: Industry: Construction: Production data was reported at -12.260 % in Oct 2018. This records a decrease from the previous number of 18.860 % for Sep 2018. Spain Business Survey: Industry: Construction: Production data is updated monthly, averaging 0.740 % from Feb 1987 (Median) to Oct 2018, with 381 observations. The data reached an all-time high of 64.000 % in May 1989 and a record low of -65.000 % in Feb 1994. Spain Business Survey: Industry: Construction: Production data remains active status in CEIC and is reported by Ministry of Industry, Commerce and Tourism. The data is categorized under Global Database’s Spain – Table ES.S001: Business Survey.

The building and construction sheets market is segmented by type of material (bitumen, rubber, polymer, and metal), application (flooring, walls and ceilings, windows, doors, roofing, and others), end-user (residential, commercial, and industrial), and geography (North America, Europe, Asia-Pacific, the Middle East and Africa, and South America).The report offers the market size and forecasts in dollars (USD billion) for all the above segments and the impact of COVID-19 on the market.

Indian Construction Industry is segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utility Construction). The report offers market size and forecasts for the Indian construction market in value (USD billion) for all the above segments.

The personnel costs of the construction industry in Italy increased by 6.3 billion euros (+21.71 percent) in 2021 in comparison to the previous year. With 35.5 billion euros, the personnel costs thereby reached their highest value in the observed period. Personnel costs are made up of wages, salaries and employers' social security costs. They include taxes and employees' social security contributions retained by the employer, as well as the employer's compulsory and voluntary social contributions.Find more statistics on the construction industry in Italy with key insights such as number of enterprises, turnover, production value, and number of employees.

Spain Business Survey: Industry: Construction: Production: Industrial Construction data was reported at 1.500 % in Nov 2018. This records an increase from the previous number of -0.300 % for Oct 2018. Spain Business Survey: Industry: Construction: Production: Industrial Construction data is updated monthly, averaging -4.000 % from Jan 1971 (Median) to Nov 2018, with 575 observations. The data reached an all-time high of 96.000 % in Aug 2000 and a record low of -95.000 % in Feb 2001. Spain Business Survey: Industry: Construction: Production: Industrial Construction data remains active status in CEIC and is reported by Ministry of Industry, Commerce and Tourism. The data is categorized under Global Database’s Spain – Table ES.S001: Business Survey.

From the first half of 2020 until the second half of 2021, Australia’s construction industry was disrupted due to the coronavirus pandemic. The industry had seen a steady rise in employment between 2013 and 2019, with the number of employees recovering to around 1.28 million in 2022. As of November 2023, construction industry employment stood at approximately 1.35 million. How important is the construction industry? The construction industry plays a major economic role in Australia. The value of private sector construction was significantly higher than the value of public sector construction in 2023. Combined, these sectors cover engineering construction work, non-residential building, and residential building. Engineering construction work, which encompasses infrastructure, was the most predominant of the three. In 2023, the value of residential construction work completed across Australia’s private and public sectors amounted to around 30 billion Australian dollars higher than that of non-residential construction work. Job outlook The leading occupations in Australia's construction industry were carpenters and joiners. Roles within this industry vary greatly, with many entry-level jobs not requiring a tertiary education degree. In terms of trade work, apprenticeships and traineeships were the main pathways to enter the market. While the job outlook has consistently been robust in this industry, in 2023, the labor productivity index showed a decline compared to the previous year. On top of this, challenges faced in recent years, such as fluctuating material costs, project delays, and skilled worker shortages, could slow down growth in this industry.

Industrial building construction contractors have been riding a wave of favourable market conditions recently, marked by a surge in factory and plant constructions. Such investments have pushed up revenue growth for industrial building contractors, with factories and plants contributing over half of the industry's total revenue. Industry revenue has been increasing at a CAGR of 5.0% over the past five years to total an estimated $16.3 billion in 2025, including an estimated increase of 1.9% in 2025. Over the past five years, industrial building construction contractors have maneuvered through the industry's evolving demands and challenges. High material costs because of supply chain disruptions and heightened energy prices have made profitability a tightrope walk. Despite these challenges, contractors have successfully passed rising costs onto clients, achieving price-based revenue gains. Labour shortages, exacerbated by an aging workforce and perceptions leading younger generations away from the trades, have also posed hurdles. Even so, contractors have responded by upskilling their workforce, adopting modular construction and expanding apprenticeship programs to mitigate labour constraints. Industrial building construction contractors are poised to capitalize on several anticipated trends over the next five years. Continued interest rate cuts are expected to spur new construction activity, providing opportunities for contractors to engage in large-scale projects. At the same time, gradual increments in material costs will likely sustain industry profitability without the abrupt shocks of past years. Corporate profit growth will further fuel construction demands as businesses reinvest in new or existing infrastructures. However, persistent labor shortages, with 700,000 trade workers set to retire by 2028, may keep wage costs elevated, challenging profit. While the Investing in Canada Plan will eventually wind down, the focus on green initiatives and retrofits will open up new revenue streams as industries modernize to meet stringent environmental guidelines. Contractors will need to continue leveraging innovations like Building Information Modeling and modular construction to mitigate the impending labour squeeze and maintain their competitive edge in an ever-evolving market. Industry revenue is forecast to increase at a CAGR of 2.1% to total an estimated $18.1 billion through the end of 2030.

In the third quarter of 2021, the hourly wage of a mechanical, electrical, and plumbing (MEP) foreman in Saudi Arabia amounted to 15 U.S. dollars, the highest among the selected jobs in the construction industry in four listed Middle Eastern countries. Meanwhile, construction skilled laborers received far lower hourly wages, at only 6.1 U.S. dollars in Qatar and 4.5 U.S. dollars in Bahrain.

Labor force of the construction industry The construction sector accounted for one of the largest shares of employees in the Middle East and North Africa (MENA) region, along with the agriculture and trade sectors. As of 2020, the overwhelming majority of jobs in the region’s construction sector were occupied by male workers. In Saudi Arabia in 2019, the average monthly wage for a construction worker was ranked the lowest among its main industries.

Labor participation in MENA In 2019, the labor participation rate of the MENA region stood below 50 percent. Female participation in the labor force is much lower than male participation. The participation rate of the female population in MENA was also lower than the global average. Although the region has witnessed an increasing female enrollment ratio for tertiary education, improved education and employment opportunities among women seem to have not reflected in female participation in the workforce.

United States Commercial Construction Market size was valued at USD 104.42 Billion in 2024 and is projected to reach USD 184.57 Billion by 2031, growing at a CAGR of 7.38% during the forecast period 2024-2031.

United States Commercial Construction Market Drivers

The market drivers for the United States Commercial Construction Market can be influenced by various factors. These may include:

Economic Growth: When the economy grows, there is usually a rise in the demand for commercial real estate, which includes hotels, offices, retail stores, and industrial buildings.
Population Growth: In order to handle the growing number of residents, there is an increasing need for infrastructure and commercial areas.
Urbanisation: The need for commercial construction projects in cities, such as high-rise buildings, mixed-use developments, and infrastructure upgrades, is driven by the trend of urbanisation.
Technological Advancements: By increasing productivity, cutting costs, and satisfying regulations, developments in construction technology, such as prefabrication, Building Information Modelling (BIM), and sustainable building practices, can have an impact on the industry.
Government rules: The commercial construction industry can be greatly impacted by government rules pertaining to zoning, building codes, taxes, and environmental standards. For example, spending packages on infrastructure or incentives for green building techniques might boost construction activity.
Interest Rates and Financing Availability: Developers’ capacity and inclination to take on commercial construction projects are influenced by the cost and accessibility of financing as well as changes in interest rates.

The Global Commercial Construction Market Size Was Worth USD 13.44 Billion in 2024 and Is Expected To Reach USD 29.56 Billion by 2034, CAGR of 8.20%.

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US Residential Construction Market Size 2025-2029

The residential construction market size in the US is forecast to increase by USD 242.9 million at a CAGR of 4.5% between 2024 and 2029.

The residential construction market is experiencing significant growth, driven by several key factors. Firstly, the increasing household formation rates in the US continue to fuel demand for new housing units. Secondly, there is a rising focus on sustainability in residential construction projects, with homebuilders increasingly adopting energy-efficient and eco-friendly building materials and practices.
However, the market also faces challenges, including a shortage of skilled labor for large-scale residential real estate projects, which can impact project timelines and budgets. These trends and challenges are shaping the future of the residential construction industry in the US.

What will be the US Residential Construction Market Size During the Forecast Period?

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The residential construction market is experiencing a significant shift as the affordable housing trend gains momentum. The Federal Reserve's decision to keep the federal funds rate low has contributed to a decrease in mortgage rates, making it an opportune time for home buyers to enter the market. However, the housing supply remains a concern, with construction spending in the residential investment sector showing only modest growth. The labor market's current state is another factor influencing the residential construction industry. With a low unemployment rate, there is a high demand for labor, leading to increased wages and, in turn, higher construction costs.
Inflation also poses a challenge, as it erodes the purchasing power of home buyers and builders alike. The economy's overall health plays a crucial role in the residential construction market's dynamics. A strong economy typically leads to increased demand for new homes, as evidenced by the double-digit growth in housing starts and building permits for single-family homes. However, a recession can lead to a significant decrease in construction activity, as seen in the cancellation rate of housing projects. The Federal Reserve's interest rate decisions, inflation, and the economy's health all impact the residential construction market. Affordable housing programs, such as housing choice vouchers and fair housing programs, play a vital role in ensuring access to housing for a broader population. The construction sectors must navigate these market dynamics to remain competitive and meet the demand for new homes.
The US residential construction market is seeing significant shifts, driven by various housing market trends. Sustainable homebuilding practices are gaining momentum, with a focus on energy-efficient homes and green building materials. Modular construction and prefab housing are becoming increasingly popular for their cost-effective and timely solutions. Urban redevelopment projects are revitalizing city areas, while suburban expansion is fueling demand for new homes. Affordable housing projects are crucial in addressing housing shortages, and real estate investment continues to thrive in these sectors. Smart home integration is also on the rise, with luxury home construction embracing high-tech features. The impact of mortgage rates, coupled with multifamily housing growth and home renovation demand, adds complexity to the market's dynamics.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Apartments and condominiums
  Villas
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Geography

  US

By Product Insights

The apartments and condominiums segment is estimated to witness significant growth during the forecast period.

The residential construction market in the US is experiencing growth in the apartment and condominium sectors, driven by shifting preferences and lifestyle choices. Urbanization is a significant factor fueling this trend, as more individuals opt for the conveniences and amenities offered in urban areas. As a result, developers are constructing modern, sustainable, and community-focused living spaces in the form of high-rise apartment buildings and condominium complexes. These structures cater to various demographics, including intergenerational groups and younger generations, reflecting diverse living circumstances. The labor economy and vaccination rates have also contributed to the continued activity in the residential sector, allowing for steady progress in construction projects. While the non-residential sector has faced challenges, the residential sector remains a vi

Brazil Construction Industry Survey: Main Problems: Construction Industry: Excessie Bureaucracy data was reported at 27.010 % in Mar 2019. This records a decrease from the previous number of 27.504 % for Dec 2018. Brazil Construction Industry Survey: Main Problems: Construction Industry: Excessie Bureaucracy data is updated quarterly, averaging 21.557 % from Mar 2015 (Median) to Mar 2019, with 17 observations. The data reached an all-time high of 27.909 % in Sep 2018 and a record low of 17.100 % in Mar 2016. Brazil Construction Industry Survey: Main Problems: Construction Industry: Excessie Bureaucracy data remains active status in CEIC and is reported by National Confederation of Industry. The data is categorized under Brazil Premium Database’s Business and Economic Survey – Table BR.SF017: CNAE 2.0: Construction Industry Survey: Main Problems: Construction Industry.

A survey conducted in 2024 among civil construction industry employees in New Zealand revealed that around 57 percent of respondents were confident in the ability of their business to withstand change and overcome challenges. Respondents had the lowest confidence in the climate-resilence of New Zealand's infrastructure network.

Heavy engineering contractors complete projects such as constructing oceanic navigational channels, beach dredging, mass transit support construction, tunnels, hydroelectric power plants and conservation development. Most of these projects are carried out by state and local governments independently or in conjunction with the federal government, so industry revenue tracks most closely with movements in public funding. Over the past five years, heavy engineering construction revenue has expanded at a CAGR of 5.2% to reach $49.2 billion in 2025, when revenue is set to climb 2.0%. While revenue has expanded, average industry profit has remained relatively level as contractors have been able to adjust to a surge in purchase and wage costs that occurred midway through the past five years. Industry revenue has recently benefited from growing federal funding, particularly as funding from the 2021 Infrastructure Investment and Jobs Act (IIJA) and the 2022 Inflation Reduction Act (IRA) has recently begun translating into shovels in the ground. These projects have included upgrades to the nation's ports, as supply chain issues earlier in the current period highlighted their issues. Growth has been countervailed by heightened interest rates, which have particularly served to discourage private sector heavy engineering construction projects, which account for a minority of the industry's revenue. Rate cuts, which began in 2024 and have continued into 2025, will benefit the industry. Moving forward, the industry will exhibit growth if federal funding and state investments remain steady. Already in 2025, however, the second Trump administration has moved to hamper spending on certain programs included in the IIJA and the IRA. A reduction in federal infrastructure spending would have a negative effect on industry revenue. Still, industry revenue is projected to rise at a CAGR of 1.7% to reach $53.5 billion in 2030. Continued interest rate cuts will benefit the industry, as will increased spending on conservation and development infrastructure and other infrastructure projects meant to deal with the growing impact of climate change.