Construction Pay Is Rising in 2026: What's Driving Wage Growth?

Construction pay is up again this year, and many tradespeople are starting to feel the shift on the jobsite. But the bigger story isn’t just higher wages — it’s where demand is concentrating, and which types of projects are driving that growth.

How Much Do Construction Workers Make in 2026?

According to an Associated General Contractors of America (AGC) analysis of federal labor data, average hourly earnings for production and nonsupervisory construction workers — the category that covers most onsite craft workers — reached $38.97 in May 2026.

That’s:

• 20.6% higher than the average for all private-sector production employees
• 5.0% year-over-year growth, compared to 3.6% across the broader private sector

That means construction wages are rising faster than the average for most workers in the U.S. economy.

Commercial vs. Residential: Two Very Different Markets

Here’s what the headline numbers don’t fully show: not every part of the construction industry is experiencing the same level of demand.

Over the past year:

• The construction industry added 68,000 jobs
• Nonresidential construction added 101,500 jobs
• Heavy and civil engineering added 25,900 jobs
• Residential construction lost 33,300 jobs

Within nonresidential construction:

• Specialty trade contractors accounted for 57,400 job gains

Residential building contractors, meanwhile, cut jobs over the same period.

While construction employment is growing overall, that growth isn't happening evenly across the industry.

Why Nonresidential Demand Is Leading the Cycle

A significant portion of current demand is tied to:

• Data centers
• Manufacturing facilities
• Power infrastructure
• Large-scale commercial construction

These projects require dense concentrations of skilled labor across electrical, mechanical, HVAC, plumbing, and structural trades.

AGC officials specifically point to data centers and related infrastructure as a key driver of job growth and upward pressure on pay.

Frequently Asked Questions

Are construction wages going up in 2026?

Yes. Average hourly earnings for construction craft workers reached $38.97 in May 2026, up 5.0% year over year, compared to 3.6% for the broader private sector. Growth is strongest in nonresidential construction.

Which parts of construction are seeing the most demand?

Nonresidential construction is leading job growth, particularly specialty trade contractors involved in commercial, industrial, and infrastructure projects such as data centers and manufacturing facilities.

Is residential construction slowing down?

Yes, relative to other segments. Residential construction employment declined by 33,300 jobs over the past year, even though monthly changes vary. While residential construction remains a significant part of the industry, recent job growth has been stronger in nonresidential construction.

What This Means for Tradespeople

The construction market isn't moving evenly, and recent job growth has been concentrated in certain parts of the industry.

Right now, the strongest demand is coming from:

• Nonresidential specialty trades
• Data center and infrastructure projects
• Manufacturing and power-related construction

Residential construction remains an important part of the industry, but recent employment growth has been stronger in nonresidential construction.

For tradespeople, that means opportunities can look very different depending on the type of work and projects in your area.

What to Do Today

If you're in the trades, here are a few things worth paying attention to:

• Consider whether your certifications align with commercial or industrial work, such as NFPA 70E, high-voltage, or commercial HVAC credentials.
• Keep an eye on upcoming data center, manufacturing, and infrastructure projects in your area.
• If residential hours are slowing, it may be worth exploring opportunities with commercial or industrial contractors.
• Watch for developments around federal infrastructure funding, including the highway and transit authorization set to expire in September 2026.
• As construction wages continue to rise, be aware of how local pay rates compare to your current compensation when discussing raises, new positions, or contract work.

See How Your Pay Compares

Averages only tell part of the story. Trade Hounds is where real tradespeople share real jobsite pay, compare rates, and see what’s actually happening across different trades and regions.

Compare your pay, see what others in your trade are earning, and understand where demand is shifting in real time.

Download the Trade Hounds app to see where you stand.