2025 Industrial Construction Cost Guide

Labor Costs Persistent labor constraints in the construction sector continue to drive up construction costs in the Americas. In the U.S., average hourly construction earnings rose 4.1% to $39.15/hour as of the first quarter of 2025, outpacing the private sector’s wage growth of 3.9%. Construction jobs also grew faster at 1.9% YOY compared to the total employment sector’s 1.2% YOY growth. Canada has also experienced strong growth in construction employment and wages. At the end of 2024, construction employment was up 1.6% YOY, and construction wages were up 2.9% YOY. However, both metrics trailed national figures, with total employment up 1.9% YOY and wages up 6.9% YOY. Wages are expected to remain elevated in 2025 as labor constraints escalate. However, increased economic and geopolitical uncertainties could impact hiring and stabilize wage growth.

U.S.: Construction Employment and Wages 10%

Canada: Construction Employment and Wages 10%

$40 $39 $38 $37 $36 $35 $34 $33 $32 $31 $30

$40 $39 $38 $37 $36 $35 $34 $33 $32 $31 $30

8% 6% 4% 2% 0%

8% 6% 4% 2% 0%

-2% -4% -6% -8% -10%

-2% -4% -6% -8% -10%

Year-over-Year Change

Year-over-Year Change

Average Hourly Earnings (USD)

Average Hourly Earnings (USD)

2021 Q1

2021 Q1

2019Q1

2019Q1

2022Q1

2022Q1

2023Q1

2023Q1

2025Q1

2021 Q3

2021 Q3

2024Q1

2024Q1

2019Q3

2019Q3

2020Q1

2020Q1

2022Q3

2022Q3

2023Q3

2023Q3

2024Q3

2024Q3

2020Q3

2020Q3

ConstructionEmployment

ConstructionWages (RHS)

ConstructionEmployment ConstructionWages (RHS) Off Chart: Q2 2020: -17%;Q2 2021: +24% ; and Q3 2021: +10% Source: Statistics Canada; Moody’s Analytics

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics

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Cushman & Wakefield