Hardware Retailing The Industry's Source for Insights and Information
The number of workers in the construction labor force moving toward management, business and technical roles is gaining momentum, according to the NAHB’s analysis of the latest 2024 American Community Survey (ACS). The share of construction trades workers has declined from 71% in 2005 to less than 59% in 2024. At the same time, the share of computer, engineering and science occupations has more than doubled, while management and business roles have expanded by 73%.
While the increase in construction workers in engineering and technology should suggest an increase in productivity in the overall construction labor force, there have been modest productivity gains as the overall share of skilled trade workers is declining and regulatory complexity and compliance costs increase with more individuals in these fields.
As of 2024, the construction labor force exceeds 12.1 million workers, slightly above its mid-2000s peak. Construction trades, such as carpenters, electricians, painters, plumbers, laborers and first-line supervisors, account for 7.1 million workers, or 58.8% of the total. In the same period, the number of white-collar workers has grown, with individuals in management roles increasing from 1.2 million to 2 million workers, increasing their share from 10% to 17%. Business and financial occupations grew at similar rates. Meanwhile, the number of engineers, architects and science-related occupations more than doubled, now accounting for nearly 2.8% of the workforce, up from 1.3% in 2005.
The number of white-collar roles remains less prevalent in construction than in the U.S. economy, but their growth has outpaced national trends. For example, the share of computer, engineering and science occupations more than doubled in construction, compared to a 48% increase across the overall U.S. workforce. Similarly, legal and design occupations doubled their share in construction, while their economy-wide presence grew only 20% since 2006.
While advances in construction technologies, like digital design, project management software and prefabrication, have increased demand for technical expertise, regulatory and building code environment has increased the need for administrative, compliance and managerial functions. The changing workforce composition also coincides with declining self-employment rates in construction, suggesting a shift toward larger firms. These firms are generally better positioned to invest in new technologies, manage regulatory complexity, and absorb rising overhead costs.
