Following the COVID-19 pandemic, the U.S. construction industry saw a surge in activity driven by strong housing demand and infrastructure investment. Between 2020 and 2022, private construction spending soared as new housing starts reached their highest levels in over 15 years before cooling off due to rising mortgage rates. As private activity slowed, public-sector construction spending grew, supported by the Bipartisan Infrastructure Law. However, the industry now faces uncertainty from high interest rates, import tariffs and a softening labor market. Labor shortages remain a critical issue, with an estimated 439,000 additional workers needed to meet demand and over 300,000 job openings reported as of mid-2025.
Despite these challenges, the construction sector is seeing notable growth in female participation, a historically underrepresented group. Women now make up 14.4% of all workers and 10.7% of full-time workers in the industry—a sharp increase from just 6% in the 1960s. While women remain a minority in trade occupations, they hold a disproportionately high share of top-paying roles such as lawyers, financial managers, engineers and executives. This concentration in higher-wage positions has helped narrow the gender pay gap in construction to 4.9%, far below the national average of 18.9%. States like Alaska, Massachusetts and Washington offer the highest adjusted median wages for women, reflecting both pay levels and regional cost-of-living differences.
