Construction Average Hourly Earnings Jump 3.6 Percent Y/Y in April

by David Flaherty | 16 June 2025 2:31 pm

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The National Association of Home Builders posted an analysis of average hourly earnings (AHE) in construction by state on June 5, based on the BLS’s April Current Employment Statistics report. AHE measures wage rates, including overtime, but does not include benefit costs and payroll taxes. States differ in the share of construction represented by lower-AHE residential vs. higher-AHE nonresidential jobs.

AHE for all employees in construction increased 3.6 percent year-over-year (y/y) in April to $39.31. AHE in construction in Alaska and Massachusetts exceeded $50 per hour, while across all states, the annual growth rate in AHE ranged from 10.6 percent in Nevada to a decline of 3 percent in Oklahoma. Alaska, states along the Pacific coast, Illinois, Minnesota, and the majority of states in the Northeast recorded the highest AHE.

As of April 2025, 14 states report AHE exceeding $40 per hour, while nine states reported under $34. The states with the lowest AHE are mostly in the South, with Arkansas reporting the lowest rate of $29.30 per hour.

While differences in regional hourly rates reflect variation in the cost of living across states, among other things, the faster-growing wages are more likely to indicate specific labor markets that are particularly tight … Nevada, Mississippi, Alaska, Colorado, Texas, Florida, South Carolina, and Montana reported [the fastest growing AHE y/y], more than doubling the national average growth of 3.6 percent,” the NAHB analysis reads.

Five other states reported modestly declining hourly rates in construction, compared to a year ago: Louisiana, Missouri, Rhode Island, California, and Wisconsin.

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