Rising Construction Wages Amid Labor Market Changes
Wages in the construction sector are experiencing an uptick as the U.S. labor market heals from a previous influx of inexpensive migrant labor that was facilitated by pro-migration policies before 2024. This information comes from a recent report by the Wall Street Journal.
This turnaround — spurred by President Donald Trump’s 2024 deportation strategy — is particularly swift in Florida. Governor Ron DeSantis (R) has been active in using law enforcement to transport many unauthorized migrants to federal deportation officials.
In Florida, for instance, construction workers who are responsible for building wooden structures for homes can now earn about $42 an hour, a significant increase from the $20 they used to make. Scott Brannock, who leads Jacksonville’s Tidewater Homes and the Northeast Florida Builders Association, shared this with the newspaper.
“We’re basically at a standstill because our foreign workforce has largely disappeared,” he noted in an October 16 article.
According to a September survey conducted by the National Association of Home Builders, labor costs have risen by a median of 4.2% compared to the previous year.
The decline in migrant labor is compelling CEOs to turn to American workers to fill roles, the article pointed out.
David Hacker, who runs Construction Specialties of North Florida, noted a staggering 70% decrease in available crews for certain jobs. This shortage has resulted in crews having to significantly increase their rates. He’s also launched a campaign to attract new hires by offering generous cash bonuses for applicants.
The trend of deportations is encouraging for many young U.S. citizens who have been sidelined from the national labor market, as highlighted by the Center for Immigration Studies in a July report:
If the percentage of U.S.-born men aged 16 to 64 participating in the labor force in 2026 resembled that of 1960, it would result in about 9.2 million more U.S.-born men in the workforce. Even a return to levels from 2000 would still mean an increase of around 4.5 million U.S.-born men participating in the labor force.
“Prime-age” U.S.-born men (ages 25 to 54), who are among the most active in the job market, have similarly seen a decline in labor force participation. The figure jumped from 4 percent not participating in April 1960 to 8.5 percent in 2000 and then to 11.1 percent by April 2026.
Media sources within the construction industry have also reported escalating wages and salaries as Trump’s policies gradually reinforce the rights of Americans to a national labor market.
TradeHounds.com stated in June that “Construction pay is once again on the rise,” with average hourly earnings of construction craft workers reaching $38.97 in May 2026. This marks a 5.0% increase year over year, compared to just 3.6% across the broader private sector, with the strongest growth occurring in nonresidential construction.
Nationwide, entry-level construction salaries saw a remarkable increase of 16 percent in 2025, climbing to $52,000, according to a December report by The Birmingham Group:
The existing labor shortage is leading to historically high wage increases across commercial projects. Construction companies are struggling to fill essential roles, with some markets seeing job opening-to-candidate ratios surpassing 3:1. This dynamic has fostered a seller’s market for skilled workers, allowing for significant salary negotiations and competitive pay packages.
The rise in wages also reflects the dangers inherent in construction work, particularly for Latino workers.
“Construction laborers, the teams involved in site preparation and material transportation, face an injury rate that exceeds the national average by over double,” a recent survey from Affordable Contractors Insurance stated. The survey found:
The total injury cases amounted to 54.3K over two years. Over two-thirds resulted in time off work, but those in this field typically take fewer than 12 days off.
In Texas, however, the recovery of the labor market is slower, as a continued supply of Mexican labor has kept wages lower on a national scale.
For example, average hourly pay for construction workers in Texas reached $37 in December 2025, which is only a slight increase from $36 in December 2024.
Interestingly, a coalition of Texas construction firms has been lobbying Republicans for additional migrant labor, as reported by Politico. They expressed concerns that without a change in policy, economic progress would stall.
Johnny Vasquez, from the Rio Grande Valley Builders Association, remarked that Hidalgo County had turned red for the president in 2024, indicating potential losses for the GOP if labor needs aren’t addressed. “For me and for our association, we need workers, whether they’re American or not,” he stated. “We just need workers.”
The surge in wage growth occurs alongside rising competition in the housing market, placing additional pressure on CEOs who have benefited from affordable labor and increasing sales for years.
A recent survey indicated that 38% of builders lowered prices in September, an increase from 35% in August, maintaining an average price cut of 6% for the sixth straight month, which the trade publication HBSDealer attributed to increasing mortgage rates.
Meanwhile, some moderate Democrats and business groups are advocating for increased immigration to further decrease wages for American workers.
