Despite cooling demand in U.S. construction—with spending down in interest-rate-sensitive sectors like housing and commercial development, and nearly 80% of contractors reporting hiring challenges—the industry’s labor gap remains significant: the Associated Builders and Contractors (ABC) estimates a shortfall of 439,000 workers in 2025. Amid these labor market pressures, construction wages are rising, but not as much as one might expect—and gains vary by state and occupation.