Editor’s Note: This story originally appeared on Construction Cover.
Wage growth is often seen as a good thing in a pandemic economy. However, higher inflation rates starting in 2021 will, in most cases, outpace wage increases.
In the construction industry, for example, the average worker has less purchasing power today than in the years leading up to the COVID-19 pandemic.
Despite persistent labor shortages and record levels of spending, overall changes in construction workers’ earnings have failed to keep pace with rising costs.
Despite rising wages below the national average, construction workers in some parts of the country have fared better. To find the areas with the fastest growing wages for construction workers, researchers at Construction Coverage analyzed data from data from the US Bureau of Labor Statistics.
The following is a breakdown of the top US metropolitan areas with the fastest growing construction wages. For more information, see the methodology section at the end.
15. Phoenix-Mesa-Scottsdale, AZ
- Inflation-adjusted change in earnings (2018-2023): +3.1%
- Real change in income (2018-2023): + 25.2%
- Annual average salary (2023): $57,800
- Average annual salary (2018): $46,180
- Total construction work: 116,950
- Construction worker concentration (compared to average): +25.0%
14. Nashville-Davidson-Murfreesboro-Franklin, TN
- Inflation-adjusted change in earnings (2018-2023): +3.3%
- Real change in income (2018-2023): + 25.3%
- Annual average salary (2023): $53,820
- Average annual salary (2018): $42,950
- Total construction work: 41,500
- Construction worker concentration (compared to average): -6.0%
13. Cincinnati, OH-KY-IN
- Inflation-adjusted change in earnings (2018-2023): +3.4%
- Real change in income (2018-2023): + 25.5%
- Annual average salary (2023): $61,200
- Average annual salary (2018): $48,770
- Total construction work: 36,460
- Construction worker concentration (compared to average): -18.0%
12. Tampa-St. Petersburg-Clearwater, FL
- Inflation-adjusted change in earnings (2018-2023): +3.6%
- Real change in income (2018-2023): + 25.8%
- Annual average salary (2023): $50,910
- Average annual salary (2018): $40,480
- Total construction work: 63,170
- Construction worker concentration (compared to average): +9.0%
11. Grand Rapids-Wyoming, MI
- Inflation-adjusted change in earnings (2018-2023): +4.2%
- Real change in income (2018-2023): + 26.4%
- Annual average salary (2023): $58,340
- Average annual salary (2018): $46,160
- Total construction work: 19,880
- Construction worker concentration (compared to average): -10.0%
10. Memphis, TN-MS-AR
- Inflation-adjusted change in earnings (2018-2023): +4.4%
- Real change in income (2018-2023): + 26.7%
- Annual average salary (2023): $51,760
- Average annual salary (2018): $40,860
- Total construction work: 19,760
- Construction worker concentration (compared to average): -23.0%
9. Fresno, CA
- Inflation-adjusted change in average salary (2018-2023): +4.4%
- Real change in income (2018-2023): + 26.7%
- Annual average salary (2023): $67,440
- Average annual salary (2018): $53,210
- Total construction work: 15,590
- Construction worker concentration (compared to average): -7.0%
8. Seattle-Tacoma-Bellevue, WA
- Inflation-adjusted change in earnings (2018-2023): +5.0%
- Real change in income (2018-2023): +27.4%
- Annual average salary (2023): $82,670
- Average annual salary (2018): $64,890
- Total construction work: 95,880
- Construction worker concentration (compared to average): +12.0%
7. Tucson, AZ
- Inflation-adjusted change in average salary (2018-2023): +5.7%
- Real change in income (2018-2023): + 28.3%
- Annual average salary (2023): $52,680
- Average annual salary (2018): $41,070
- Total construction work: 14,950
- Construction worker concentration (compared to average): -5.0%
6. Sacramento-Roseville-Arden-Arcade, CA
- Inflation-adjusted change in earnings (2018-2023): +5.9%
- Real change in income (2018-2023): + 28.5%
- Annual average salary (2023): $72,450
- Average annual salary (2018): $56,390
- Total construction work: 53,350
- Construction worker concentration (compared to average): +24.0%
5. Portland-Vancouver-Hillsboro, OR-WA
- Inflation-adjusted change in earnings (2018-2023): +6.0%
- Real change in income (2018-2023): + 28.6%
- Annual average salary (2023): $74,770
- Average annual salary (2018): $58,150
- Total construction work: 57,010
- Construction worker concentration (compared to average): +15.0%
4. Columbus, OH
- Inflation-adjusted change in average salary (2018-2023): +7.1%
- Real change in income (2018-2023): +30.0%
- Annual average salary (2023): $64,090
- Average annual salary (2018): $49,310
- Total construction work: 34,800
- Construction worker concentration (compared to average): -20.0%
3. Las Vegas-Henderson-Paradise, NV
- Inflation-adjusted change in average salary (2018-2023): +7.4%
- Real change in income (2018-2023): + 30.3%
- Annual average salary (2023): $64,890
- Average annual salary (2018): $49,810
- Total construction work: 57,080
- Construction worker concentration (compared to average): +29.0%
2. Miami-Fort Lauderdale-West Palm Beach, FL
- Inflation-adjusted change in average salary (2018-2023): +7.5%
- Real change in income (2018-2023): + 30.5%
- Annual average salary (2023): $56,170
- Average annual salary (2018): $43,050
- Total construction work: 103,120
- Construction worker concentration (compared to average): -8.0%
1. San Jose-Sunnyvale-Santa Clara, CA
- Inflation-adjusted change in earnings (2018-2023): +8.7%
- Real change in income (2018-2023): + 31.9%
- Annual average salary (2023): $88,620
- Average annual salary (2018): $67,180
- Total construction work: 36,830
- Construction worker concentration (compared to average): -21.0%
How to do it
To find the areas with the fastest growing wages for construction workers, researchers at Construction Coverage analyzed the latest data from the US Bureau of Labor Statistics 2023 Occupational Employment and Wage Statistics.
The researchers ranked the regions according to the change in construction worker earnings from 2018 to 2023.
The researchers also calculated the unadjusted change in income from 2018 to 2023, the average annual income for 2023 and 2018, and the concentration of construction workers compared to the national budget.
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