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What’s behind the projected construction employment growth from 2023 to 2033?

By William Lawhorn and Stanislava Ilic-Godfrey

Imagine a future where our cities and homes are smarter, powered by renewable energy, and roads are lined with electric vehicle (EV) charging stations. This isn’t a distant dream—it’s a likely scenario shaping the construction industry’s employment landscape over the next decade.

Although the construction industry is highly cyclical, over the long run employment growth is mainly driven by the demand for more homes, offices, stores, schools, factories, and other structures built to meet the needs of a growing population and a growing economy. This continues to be the story for the 2023–33 projections—long-term structural growth led by moderate population growth and more building activity. This Beyond the Numbers article explores construction employment growth trends resulting from the expansion of renewable energy, the increasing need for artificial intelligence (AI) data centers, and an expanding electric vehicle (EV) infrastructure.

The construction sector is divided into 15 more detailed industries for which the U.S. Bureau of Labor Statistics (BLS) produces employment projections. (See table 1.) The fastest growing construction industries are directly related to the expansion of power generation, data centers, and EV infrastructure.

Table 1. Construction industry employment and projected employment, 2023–33

Industry sector	Employment, in thousands, 2023	Projected employment, in thousands, 2033	Employment change, in thousands, 2023–33	Percent employment change, 2023–33
Construction	8,017.9	8,398.0	380.1	4.7
Power and communication line and related structures construction	239.6	255.3	15.7	6.6
Electrical contractors and other wiring installation contractors	1,067.4	1,137.9	70.5	6.6
Plumbing, heating, and air-conditioning contractors	1,259.4	1,334.4	75.0	6.0
Nonresidential building construction	884.2	936.4	52.2	5.9
Other building equipment contractors	155.9	164.6	8.7	5.6
Other specialty trade contractors	780.0	823.0	43.0	5.5
Poured concrete foundation and structure contractors	255.8	267.9	12.1	4.7
Highway, street, and bridge construction	369.8	386.3	16.5	4.5
Other heavy and civil engineering construction	128.6	134.4	5.8	4.5
Roofing contractors	245.3	256.1	10.8	4.4
Residential building construction	927.0	963.2	36.2	3.9
Masonry contractors	149.2	152.8	3.6	2.4
Drywall and insulation contractors	247.1	248.6	1.5	0.6
Painting and wall covering contractors	205.0	205.8	0.8	0.4
Land subdivision	38.5	38.6	0.1	0.3
Note: Employment for industries is wage and salary. Source: U.S. Bureau of Labor Statistics.

From bust to historic high: A recent history of construction jobs and outlook

The Great Recession caused the construction sector to lose over 2 million jobs by 2011, falling to a level of about 5.5 million. It took over a decade to return to the 2006 level of employment. In 2023, construction employment reached an all-time high of 8.0 million—surpassing the previous peak employment level from 2006, which was about 7.7 million. (See chart 1.) The construction industry is projected to grow 4.7 percent from 2023 to 2033, faster than the 4.0 percent projected for all industries. This growth will result in the addition of about 380,100 new jobs—bringing the projected employment growth in the construction industry to nearly 8.4 million by 2033. Construction occupations related to these activities are also projected to see faster than average employment growth.

Factors affecting construction growth

The need to build out energy capacity and infrastructure will drive above average employment growth for construction jobs over the next decade. The key drivers behind this growth are: 1) Electricity capacity expansion driven by renewable sources growth; 2) Expanding appetite for data and AI technologies; and 3) Growth in EV infrastructure.

Electricity generation capacity expansion driven by renewable energy

Demand for electricity generation is expected to increase over the next decade, after recording nearly two decades of flat demand. The Energy Information Administration projects an increase in total electric power capacity of 42.3 percent from 2023 to 2033.¹ (See chart 2.) In August 2024, about 6.8 percent of construction spending was related to new power generation.²

Although power generation is included in the utilities industry, the construction industry will be needed to build and maintain new infrastructure for the utilities industry to be able to produce additional electricity.

BLS projects that the four fastest growing industries are all related to renewable power generation (utilities sector), which will be needed to keep up with the increased demand for electricity over the 2023–33 decade. Employment in solar electric power generation, wind electric power generation, other electric power generation, and geothermal electric power generation are all projected to increase by over 40 percent as the capacity of renewable electric power generation expands. Employment in solar and wind electric generation are projected to grow 275.9 percent and 115.1 percent, respectively, by 2033. The capacity growth of this new power generation is projected to create 48,700 new jobs in these utilities industries by 2033, but this figure does not include the growth in construction related jobs needed to build the capacity.

An increased adoption of electric technologies in factories, homes, and businesses, including the use of robotics, electrical vehicles, and the emerging demand to support AI are among the key drivers for increased energy usage.

Demand for more electricity will mainly be satisfied by building out additional renewable energy capacity, particularly from solar and wind energy generation, which in turn continues to be supported by government and private investments. The emerging energy storage market will also influence solar installations, as solar projects increasingly include storage, and micro-grid installations.³ Installation and grid expansion with new energy sources will require the employment of workers from the power and communication line and related structures construction, and electrical contractors and other wiring installation contractors’ industries.

Renewable power generation capacity is projected to grow from 340.7 to 823.8 gigawatts (GW) from 2023 to 2033, a 141.8-percent increase and fastest of all power generation sources.⁴ The strong projected expansion in renewable energy supply will require building additional power infrastructure to connect power sources with customers. This will in turn contribute to the fast employment growth in construction industries related to power lines and electrical work. Power and communication line and related structures construction, and electrical contractors and other wiring installation contractors are both projected to grow at 6.6 percent—the fastest of all construction industries and faster than the 4.0-percent average for all industries.

Table 2. Selected construction industry employment and projected employment, 2023–33

Industry sector	Employment, 2023	Projected employment, 2033	Employment change, in thousands, 2023–33	Percent employment change, 2023–33
Construction	8,017.9	8,398.0	380.1	4.7
Power and communication line and related structures construction	239.6	255.3	15.7	6.6
Electrical contractors and other wiring installation contractors	1,067.4	1,137.9	70.5	6.6
Note: Employment for industries is wage and salary. Source: U.S. Bureau of Labor Statistics.

Expanding appetite for data and artificial intelligence technologies

The rise of AI and increased demand for cloud services are projected to lead to continuing construction of new data centers and demand for electricity to operate these facilities. By 2030, demand from data centers is expected to reach up to 9 percent of total electricity generation—up from 4 percent today.⁵ Another study projects that the demand from data centers is expected to grow to about 80 GW by 2030, tripling the level of demand from 25 GW in 2024, to represent up to 12 percent of total projected electricity generation, depending on the pace of development.⁶ This will require both renewable sources of electricity and workers to build and maintain the required structures.

During the coming decade, nonresidential building construction employment, including the work related to building data centers, is projected to grow 5.9 percent. Building construction requires subcontractors, such as plumbing, heating, air conditioning, and electrical workers, to complete the work.

Table 3. Selected construction industry employment and projected employment, 2023–33

Industry sector	Employment, in thousands, 2023	Projected employment, in thousands, 2033	Employment change, in thousands, 2023–33	Percent employment change, 2023–33
Construction	8,017.9	8,398.0	380.1	4.7
Plumbing, heating, and air-conditioning contractors	1,259.4	1,334.4	75.0	6.0
Nonresidential building construction	884.2	936.4	52.2	5.9
Other building equipment contractors	155.9	164.6	8.7	5.6
Note: Employment for industries is wage and salary. Source: U.S. Bureau of Labor Statistics.

As technology improves more data will need to be processed and managed, which will require more server and related information technology infrastructure, and the buildings to store them. With an expected exponential growth of data used to support work and life—from the use of more autonomous vehicles, virtual-reality software, or other forms of cloud-based technology—more data centers will be needed to support data processing.⁷ The increase in the use of generative AI requires additional capacity for electricity and cooling systems to operate data centers. One AI request, for example, uses nearly 10 times more electricity than a regular search engine request.⁸ Built as warehouses with rows of computer equipment that process everything that is done online, data centers are critical to the economy and keeping them operational requires a reliable supply of electricity and cooling capacity.⁹ These buildings will require additional infrastructure support, including power and electrical lines, HVAC, and water supplies, all of which will require construction and maintenance.

Table 4. Selected construction industry employment and projected employment, 2023–33

Industry sector	Employment, in thousands, 2023	Projected employment, in thousands, 2033	Employment change, in thousands, 2023–33	Percent employment change, 2023–33
Construction	8,017.9	8,398.0	380.1	4.7
Poured concrete foundation and structure contractors	255.8	267.9	12.1	4.7
Highway, street, and bridge construction	369.8	386.3	16.5	4.5
Other heavy and civil engineering construction	128.6	134.4	5.8	4.5
Note: Employment for industries is wage and salary. Source: U.S. Bureau of Labor Statistics.

New data center projects necessitate the involvement of a variety of construction trade workers. Work activities for these types of structures include ground preparation, concrete pouring, steel work, water supply, as well as installing and servicing electrical equipment and wiring. Several construction industries are expected to benefit from these expansions, including electrical contractors and other wiring installation contractors; heating, and air-conditioning contractors; and related structures construction, as well as concrete pouring, and pipe laying. (See table 1.)

Growth in electric vehicle (EV) infrastructure

The number of EV sales in the United States has jumped from less than 1 percent in 2013 to nearly 10 percent of all new vehicles sales in 2023.¹⁰ As EVs become more affordable, higher sales are expected over the next decade, which will increase demand for jobs related to building EV charging infrastructure.

The expected growth in the use of EVs over the next decade will require an expansion of charging options. Although the capacity of EV batteries is expected to continue to increase, more charging infrastructure will be needed to support the increased use of EVs.¹¹ There are currently various types of electrical vehicles charging stations, from a standard home plug that typically requires no additional electrical work, to an upgraded charging station which enables faster charging and requires an electrician to connect the station to the power source.¹² Electricians or electrical companies are needed to install and connect the upgraded charging stations. While not typically used for home charging because of the high cost and power requirements, the upgraded charging stations provide the fastest charging speeds and are usually found at public charging stations.¹³ Installation of these systems can be more complex if they are integrated with battery storage capacity and solar charging systems.¹⁴ Demand for these systems is also expected to increase over the next 10 years.

With the growth of EV ownership, the building of electrical and charging stations will be required in many places: drivers’ homes, work and public parking garages, and highway rest stops. This in turn will contribute to the fast employment growth of electrical contractors and other wiring installation contractors to build EV charging stations. (See table 1.)

As more consumers use EVs for driving longer distances, and with a wider adoption of EVs, a more robust network of fast charging stations will be needed.

Related occupations

There are six occupations related to construction and maintenance that are expected to grow faster or much faster than the 4.0 percent growth that is projected for all occupations. These occupations build and maintain the related infrastructure needed to support the industry factors discussed above.

Construction laborers will add the most openings of any construction occupation, 115,400 from 2023 to 2033. Laborers are needed for site preparation as well as installation and maintenance activities. In some areas, laborers participate in solar panel installation. (See table 5.)

Table 5. Selected construction, installation, and maintenance occupations, projected 2023–33

Occupation title	Employment, in thousands, 2023	Employment change, in thousands, 2023–33	Percent employment change, 2023–33	Median annual wage, 20231
Total, all occupations	167,849,800	6,739,200	4.0	48,060
Wind turbine service technicians	11,400	6,800	60.1	61,770
Solar photovoltaic installers	25,000	12,000	48.0	48,800
Electricians	779,800	84,300	10.8	61,590
Heating, air conditioning, and refrigeration mechanics and installers	441,200	40,100	9.1	57,300
Construction laborers	1,401,200	115,400	8.2	45,300
Electric power-line installers and repairers	123,400	7,600	7.6	85,420
1 Data are from the Occupational Employment and Wage Statistics program, U.S. Bureau of Labor Statistics. Wage data cover nonfarm wage and salary workers and do not cover the self-employed, owners and partners in unincorporated firms, or household workers. Source: U.S. Bureau of Labor Statistics.

The two fastest growing occupations overall—wind turbine service technicians and solar photovoltaic (PV) installers—are both closely related to construction of renewable electric power generation. Wind turbine service technicians prepare and test systems before new wind turbines start operations and then they perform regular maintenance on existing wind turbines. PV installers focus on new installation of both utility-scale and residential solar panels.

Electricians are needed to install EV charging stations, and the electrical work related to newly built data center facilities. About 84,300 new electricians will be needed by 2033 to perform this work as well as install wiring in all the buildings constructed and remodeled. Some states require electricians to connect solar panels to homes and the power grid.

Although categorized as maintenance and repair occupations, heating, air conditioning, and refrigeration (HVACR) mechanics and installers are also needed to finish construction projects. The 40,100 new HVACR workers will be needed by 2033 to also install and maintain climate control to buildings. New data centers will require clean air, low humidity, and temperature control to maintain the operations. If the systems stop working efficiently, HVACR workers will be needed to quickly restore operations.

Employment of construction laborers, electricians, and heating, air conditioning employment will all benefit from the increase in demand for electrification over the next decade. For example, an increase in activities related to establishing new electric charging options will contribute to their employment growth.

Electrical power-line installers and repairers will be needed for work related to EV charging stations, as well as for electrical work related to new data centers facilities. The distributed nature of renewable energy production requires new lines to allow the electricity to move to where it is needed from where it is produced.

Conclusion

Several factors will contribute to the faster than average growth that is expected for the construction sector from 2023 through 2033. Demand for additional electricity generation capacity, new data centers, and infrastructure related to EVs will drive this growth. Although many construction and related occupations are needed to build buildings and related infrastructure—those occupations related to energy production and transmission, along with the construction of new data centers facilities, will lead future employment growth in nonresidential construction.

This Beyond the Numbers article was prepared by William Lawhorn and Stanislava Ilic-Godfrey, economists in the Office of Employment and Unemployment Statistics, U.S. Bureau of Labor Statistics. Email: lawhorn.william@bls.gov and ilic-godfrey.stanislava@bls.gov; telephone: (202) 691-5728.

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