2025 Construction Outlook Update – Workforce Snapshot

2025 Construction Outlook Update – Workforce Snapshot

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2025 Construction Outlook Update – Workforce Snapshot

Overview

In this year’s Workforce Snapshot report, we spotlight the impressive diversity within our workforce, underscoring the industry’s essential role in providing upward mobility for individuals from a wide range of backgrounds, speaking numerous languages, and originating from all corners of the globe. By embracing this growing diversity, the industry reaffirms its lasting commitment to creating employment opportunities for New York’s immigrants and communities of color.

The construction workforce in this report includes workers engaged in building and infrastructure projects, design, site preparation and excavation, governmental activities, and consulting on various construction activities self-reported in the American Community Survey (ACS).

Our industry is heading in the right direction. We expect that the statewide construction industry will finally catch up to pre-pandemic workforce numbers by the end of 2025. Statewide, the construction workforce amounted to 560,000 workers in 2023, indicating a 95.7% recovery to pre-pandemic employment levels of 585,000. Despite not having made a full recovery yet, the labor force has still grown rapidly in the state since 2020, when the worker level stood at 493,600.

Statewide private sector construction industry employment remains largely unchanged from the prior three years, employing 71% of the workforce. While not all construction jobs provide full-time employment, recent growth continues to offer significant opportunities for well-paying jobs, the majority of which (73%) are blue collar jobs. The labor force within New York City took a negligible step back in 2023 from 254,900 to 247,000 workers in 2023. At this level, 70% or 173,000 workers were residents of New York City. Employment in the private sector of the construction industry reached 190,000 jobs by 2023. New York City now accounts for 44% of all construction work in New York State, much like last year.

2023 showed an industry that’s more diverse than ever before, and one with higher earnings than ever before. Statewide, the workforce had clear, significant upward shifts in earnings across the industry. This report makes it clear: The construction industry remains a powerful pathway to the middle class for New Yorkers of all walks of life.

A MESSAGE FROM OUR CHAIR AND PRESIDENT & CEO

In New York, the construction industry’s workforce remains a bedrock of resilience and innovation. Their skill, dedication, and hard work shape our skyline, strengthen our communities, and fuel economic growth. By transforming visions of skyscrapers and essential infrastructure into reality, they make ambitious projects possible. These achievements stem from countless hours of training, education, and effort, reflecting their commitment to our shared future.

As we look ahead, it is more important than ever to recognize and appreciate the contributions of construction workers, while also addressing the challenges they face. The Building Congress remains committed to ensuring our workforce has the tools they need to succeed, along with strong support from our elected officials. Together, we can build a brighter future for New York and honor the workers who make it all possible. By working together, we can build a better future for generations to come.

LOOKING AHEAD

Though limited, Bureau of Labor Statistics (BLS) data on workers employed in the “Construction of Buildings, Heavy and Civil Engineering Construction, and Specialty Trade Contractors” largely follows the same direction as ACS data, allowing us to make a reasonable projection that by the end of 2025 the construction workforce is estimated to comprise about 583,000 workers, a near full recovery (99.6%) from the industry’s pre-pandemic workforce level of 585,000 statewide in 2019. This is a major milestone. However, it must be monitored while we consider factors such as uncertain federal infrastructure spending.

DEMOGRAPHICS

RACE-ETHNICITY

The racial-ethnic composition of New York’s construction labor force is highly diverse statewide, with 45% of the industry’s workers identifying as nonwhite, unchanged from 2022. Comparatively, the workforce in NYC is 66.8% nonwhite, down from 68% in 2022. The racial-ethnic composition of New York State’s construction labor force differs markedly from that of New York City. At 30%, Hispanics represent the largest minority component with nearly 168,000 construction workers, largely unchanged from 2022. Within the city, although no race or ethnicity represents a majority of the total, Hispanics comprise the largest and fastest growing share at 44%. Since 2020, when the construction labor force of New York City was 15% smaller, the White non-Hispanic component contributed some 4,100 workers to its growth while the Hispanic component expanded by 29,000 workers. Additionally, Black non-Hispanics have decreased by some 3,000 workers over the past year, while Asians and Others have decreased more rapidly, losing around 5,000 workers.

The famous “Lunch atop a Skyscraper” photograph above gives us a glimpse of the construction industry demographics in 1932, a workforce defined largely by waves of European immigration into the US. If that photo were taken today, the workers eating lunch on that beam would show a whole new dynamic, reflecting a broad range of cultural backgrounds that mirror America’s ever-evolving demographic landscape.

GENDER

Statewide, 9.1% of all construction laborers are women, down slightly (0.9%) from 2022. However 9-10% has been a stable share, virtually unchanged over the past
few years.

In NYC, 8% of all construction industry workers are women, a small increase from 2022.

67% of women in the industry across the state have some college education or higher, up considerably from 61% in 2022, compared to 37% of men in the industry.

Within NYC, education levels follow that of the state, with the percentage of women in the workforce having some college education or higher being almost double (69%) that of men (35%). Within the city 1% of all participating women fall into the “no schooling” category, with men reaching only 7%.

In 2023, 59.8% of statewide construction workers had a household income above $100,000, a large increase up from 55% of all workers in 2022. Women’s higher educational attainment also correlates with higher higher household incomes. In 2023, 47% of all male workers reported household incomes above $125,000 annually compared to 53% of women earning over $125,000.

LANGUAGE

English is a far more prevalent language in New York State, spoken by 60.4% of all construction workers in 2023.Spanish remains the second-most common language at26.4%, while no other primary language exceeds 2.5% of the work force. Within NYC, English is the primary language spoken by40.1% (down from 41.1% in 2022) of the construction industry labor force. Spanish places a close second at 39.3% of workers, with all other languages each accounting for less than a few percent.

CITIZENSHIP STATUS

17% of the statewide construction labor force noted having full citizenship status, while the majority (60.4%) were unreported. This shows a clear trend as the share of the workforce with full citizenship is increasing year over year, up from 14.8% in 2021, and 15.7% in 2022, while those not reporting citizenship data is decreasing year over year, from 64% in 2021, to 61.2% in 2022.In NYC, 26% of the construction labor force report full citizenship status, while roughly 36.2% are non-citizens and the remaining 37.8% are nonrespondents.

Bottom Line: The industry boasts not only remarkable diversity but also a high level of education. The increasing number of immigrants and non-English speakers into the workforce has demonstrated a positive correlation with the overall educational attainment within the construction industry. This underscores the invaluable strength that diversity contributes to our field.

AGE

45.5% of construction workers in New York State are between the ages of 25 and 45 years old (up from 44.3%in 2022). 35.6% of NY construction workers are 50 or older (down from 36.2% in 2022), while 7.5% are under25 years old, down from 7.9 % the prior year, though still showing an increasing trend, as it’s up from 6.8% in 2020,and 6.6% in 2021.Within NYC, the age structure of construction labor is marginally younger, as 47.9% are between the ages of25 and 45 years old (up from 47% in 2022). 34% are50 or older (the same as 2022), while 6.1% are under 25years old, down slightly from 6.5 % in 2022, though still trending up from 4.9% in 2020.

KEY INSIGHTS

The challenges linked to an increasingly older construction workforce have raised widespread industry concern. Trends for the past two years show a slow reversal of this trend as more youth join the industry. Aided by this is the high level of diversity within the state’s construction sector which contributes to the trend as the younger workforce tends to be more diverse. In New York State 54% of the non-White workforce is between ages 30 – 49, while 41% of the White workforce falls into those ages. 41% of the White workforce is over 50, while 30% of the non-White workforce is over 50. Statewide, the age structure of construction labor is marginally older than in New York City, owing to the stronger representation of white non-Hispanics in the overall labor force. 7% of the White workforce is above age 65, compared to only 4% of the non-White workforce. Within the city, 53% of the non-White workforce is between ages 30 – 49, while 42% of the White workforce falls into those ages. 42% of the White workforce is over 50, while only 30% of the non-White workforce is over 50.6% of the White workforce in NYC is above age 65, compared to only4% of the non-White workforce. Within both the city and state, it is promising to observe a trend showing an increasing proportion of workers over the last couple of years under the age of 25, indicating the emerging influence of new generations making strides within the industry.

EMPLOYMENT/INCOME

HOUSEHOLD INCOME

Many construction worker households rely on multiple sources of income. Due to the intermittent nature of construction work, especially during longer off-seasons, a steady and dependable income stream is typically essential.

In 2023, 59.8% of the state’s construction labor force reported a household income of $100,000 or above, with 47.3% of all households having an annual income that exceeded $125,000. This shows higher incomes from last year’s statewide proportions which reported only 56.6% having incomes above $100,000 and only43% above $125,000. Within NYC, we noted 57.6% and46.3% respectively. Similar to statewide statistics, we see a significant increase. Last year, in NYC, only 55% of the workforce reported incomes over $100,000, and only 43%above $125,000, which reflects higher earnings across the board for industry professionals. Our workforce is earning more than ever before, further solidifying the construction industry as a real pathway into the middle class.

EARNINGS

The annual earnings of construction workers throughout New York City are slightly higher than those in New York State, as 32% of workers in NYC earn over $75,000, compared to only 30% statewide. Statewide earnings are overall trending higher than in prior periods, as only 28%earned over $75,000 in 2022, and 27% in 2021.

When compared on a bracketed basis, the differences are most apparent in the lower and upper income ranges:

47% of all NYS construction workers reported earnings of less than $50,000 per year, with 35% earning between $50,000 and $100,000 , and 18% at more than $100,000. This is a significant trend towards higher incomes industry wide, up from 2022 where 51% reported earning less than $50,000 per year, 32% between$50,000 and $100,000, and only 16% earning above$100,000.

Statewide, the percentage of women in the workforce who earn over $125,000 was 7%, compared to 10% of men. Following this trend, within NYC, the percentage of women earning over $125,000 was 7.4% compared to10.7% of men.

KEY INSIGHTS: HIGHER EARNINGS (IN DEPTH)

The chart above shows the number of workers earning between $25-$49K decreasing by about 20,000 workers, while the number of workers in higher income ranges increased in 2023. Those earning between $50-$75k increased by about 11,000, those earning between $75-$99k increased by over 2,500, and the number of workers earning over$100k increased by about 5,500.

HEALTH INSURANCE

Across New York State, health insurance coverage of construction workers has remained relatively stable in recent years, at 60% of all workers in 2023, the same as in2022.

Statewide, workers who have the highest insurance coverage are white collar workers, as 74% have insurance coverage, representing 16% of the overall workforce covered. The next highest coverage is with Service workers, of whom 70% have health insurance coverage, representing 4% of the total workforce insured. Only 55% of blue-collar workers reported having health insurance, representing 40% of the total workforce covered by health insurance.

OCCUPATION

Higher shares of blue collar occupations and lower shares of white collar and service occupations than in New York City. 73 % of all workers engaged in the construction industry are blue collar workers, including construction, installation, material moving, and production workers. 21.5% of workers in the industry are white collar workers including managers, architect and engineers, while 5.7%are in service occupations such as office and administrative support and sales.

Within NYC, 77.8% of all workers in the industry are blue collar workers, with only 18.5% white collar workers and3.6% service occupations.

SECTOR

71% of NYS construction industry workers are employed in the private sector. Another 8% work for government and non-profit institutions, while self-employment encompasses 20% of all construction workers in 2023. Within NYC private sector opportunities are relatively more available with most construction workers, or 76.8% of total, employed in the private sector. Another 7.5% work for government and private non-profit institutions, while 15% were self-employed.

“With New York’s construction workforce on track to nearly fully recover to pre-pandemic levels, we’re expanding in both size and diversity, offering robust wages that secure middle-class careers for New Yorkers of all backgrounds. As we tackle ambitious infrastructure projects, it is vital we safeguard federal funding to maintain the momentum that fuels job growth across our state. By strengthening apprenticeship programs, including M/WBE participation, and continuing support for younger workers, we can ensure a resilient industry that keeps every New Yorker invested in building our shared future.”

Gary LaBarbera
President, Building and Construction Trades Council of Greater New York

TRAVEL

MODE OF TRANSPORTATION

In pre-COVID years, virtually half of New York City’s construction labor force arrived at work via public transportation, but during COVID the share of the workforce traveling by private motor vehicle had taken the lead. Since 2023, however, public transportation has returned as the main mode of transportation at around 47% of workers, compared to 44.5% in 2022. Private vehicles now make up 44%, up slightly from 43.6% in 2022.

However, statewide, commuting via private motor vehicle is still the dominant mode of transportation among construction workers, accounting for 68.8%, with only 22.1% of commuters traveling via public transportation.

TRAVEL TIME

Surprisingly, travel times statewide are much shorter in duration than those in NYC alone, with roughly 42% taking less than 30 minutes of travel time to work, compared to 21% in NYC. 24% had commute times greater than 60 minutes in NYS, with around 39% in NYC.

Long commutes within New York City are likely tied to surging housing costs, forcing many in the industry to work further away from high-cost Central Business Districts.

RECOMMENDATIONS AND GOALS

1. Expand Career and Technical Education (CTE) Programs.
   Enhance CTE programs in New York public schools to better prepare students for high demand careers in Architecture, Engineering, and Technology
2. Increase investment in science, technology, engineering and math (STEAM) childhood and professional education.
   Statewide, Computer/Math, Architecture and Engineering jobs are in high demand in our industry as projects become more technical and complex than ever before.
3. Provide further government support to train and develop new sectors of the construction industry workforce, which require highly specialized training and education.
   Specifically, ‘green’ construction occupations and responsible ways to utilize Artificial Intelligence within the industry.
4. Promote greater involvement of younger individuals in the construction workforce.
   The New York Building Congress’s Young Professionals Committee has been active in engaging and attracting younger workers to the construction industry. As noted above, the workforce within NYC under 25 years old slipped slightly, but is still up from 4.9% in 2020. We will aim to build off this success and continue to retain and grow the building industry’s next generation of leaders.
5. Increase M/WBE participation statewide.
   By developing a one-stop-shop for M/WBE firms to bid on all state, city, and public authority projects in one place, we can proactively increase the number of M/WBE firms involved in such public works projects, increasing the workforce diversity in a positive and meaningful way.
6. Incentivize the expansion of childcare hours so that families who work in this industry have adequate childcare when they are required to be on job sites during non-traditional hours.
   As many construction industry workers are from multiple-income households, it is essential to provide childcare options that suit their needs, particularly for workers who are required to be at construction sites early in the morning, and late at night, when public schools are not open.
7. Increase support for workspace training programs statewide.
   Building Congress members award scholarships and provide workforce training programs today to create a more robust construction industry workforce. One great example is the Apprenticeship Readiness Collective (ARC), a groundbreaking, first-of-its-kind horizontal collective designed to reduce competition and foster collaboration between Direct Entry programs. Formally endorsed by the Building and Construction Trades Council of Greater New York (BCTC), ARC brings together four leading organizations in workforce development. These organizations have a clear shared goal: to increase access to apprenticeship programs. Together through outreach and recruitment efforts ARC interacts with approximately 5,000 New Yorkers annually, with an 84% retention rate after apprentice placements are made. These programs can continue to grow with adequate public support for union labor.

Those programs include:

• • The Edward J. Malloy Initiative for Construction Skills, Inc.
  • Nontraditional Employment for Women
  • New York Helmets to Hardhats
  • Pathways to Apprenticeship

BIPARTISAN INFRASTRUCTURE LAW UPDATE

The $1.2 trillion infrastructure funding bill expires in fiscal year 2026. It is imperative that a new, comprehensive funding mechanism is created in its place to solidify the gains our nation has made in terms of infrastructure improvements. We will encourage elected officials to maximize the amount of BIL funding that can be spent on workforce development through these new mechanisms.

FEDERAL POLICIES TO SUPPORT GROWING OUR WORKFORCE STATEWIDE

1. Decrease fees for federal certification and required training courses, particularly OSHA Training Courses, often cited as a barrier to entry.
2. Increase Workforce Innovation and Opportunity funding for programs that affect the Construction and Building trades such as the funding the Youth Activities program, the Adult Employment and Training Activities program, and the Dislocated Worker Employment and Training Activities program.