Top Earners: States with Highest Construction Wages in 2024

According to the most recent Current Employment Statistics (CES) report from the Bureau of Labor Statistics (BLS), not seasonally adjusted (NSA) average hourly earnings (AHE) in construction climbed 5% over the previous year and are on track to reach $38 in March 2024.

Construction wages continue to climb, sometimes outperforming and exceeding average rates in other industries, reflecting ongoing long-term labor shortages.

In February, AHE in construction surpassed $49 (NSA) per hour in Massachusetts, with 10 other states reporting hourly rates above $41.

In four states, construction wage growth exceeded 8% (NSA) in February, the most recent month for which state-level AHE data are available.

Average hourly earnings (AHE) in construction vary significantly across the 43 states that collect this information.

States in the northeast and along the Pacific coast have among of the highest AHE rates. As of February 2024, nine states reported average earnings (NSA) of more than $43 per hour, including Massachusetts (48.9), Washington (47.3), New Jersey (45.6), Alaska (45.0), Illinois (44.9), New York (44.9), Rhode Island (44.7), California (44.1), and Oregon (43). At the same period, the US average hourly wage in construction is $37.7 (NSA).

The great majority of Southern states record non-seasonally adjusted average hourly earnings in construction of less than $34.

Seven of the lowest 10 states with an AHE of $32 or less per hour are in the South.

Arkansas and Mississippi have the lowest hourly salaries ($28.9), followed by West Virginia ($30.8), South Carolina ($31.3), Florida ($31.4), Alabama ($31.5), New Mexico ($31.6), and Kentucky ($31.7).

Maine and Oklahoma round out the bottom ten, with an average hourly wage of $32.

While regional hourly rates reflect variances in the cost of living between states, among other things, faster growing wages are more likely to suggest exceptionally tight labor markets.

All states reported rising not seasonally adjusted hourly wages in February 2024, with the exception of Wyoming (where wages increased by 11% in the previous year but stayed steady at the start of 2024).

Idaho, Wisconsin, Iowa, and Utah reported yearly increases in hourly rates ranging from 8% to 9%, greatly exceeding the national average growth rate of 5% in construction earnings (NSA).

As shown in the heat map below, AHE grew quicker in the southern states, where hourly earnings are typically lower.

The correlation analysis reveals that, starting a year ago, hourly earnings in states with lower AHE have tended to climb quicker.

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