As the construction industry moves into 2026, shifting economic conditions are reshaping job opportunities and wages for skilled tradespeople across the United States. A new analysis from Construction Coverage highlights how carpenters are faring nationally — and where South Dakota stands compared to other states.
The report draws on the most recent data from the U.S. Bureau of Labor Statistics and the U.S. Bureau of Economic Analysis, examining projected job growth, wage levels relative to other construction trades, and regional differences after adjusting for cost of living.
After a surge during the COVID-19 pandemic fueled by low interest rates and strong housing demand, residential construction activity has cooled from its 2022 peak. At the same time, public construction spending — boosted in recent years by federal investments through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act — appears to be leveling off, signaling a more cautious outlook for the industry overall.
Despite these headwinds, demand for carpenters remains solid. The Bureau of Labor Statistics projects carpenter employment will grow 4.5% between 2024 and 2034, outpacing the 3.1% growth rate expected across all occupations. While this trails the broader construction trades category, which is projected to grow 5.2%, it still reflects sustained demand for carpentry skills.
Other trades such as electricians and roofers are expected to see faster growth, driven in part by electrification projects and residential solar installations. Carpenters, whose work is more closely tied to new construction and remodeling, tend to experience greater sensitivity to economic slowdowns and interest rate changes.
Nationally, carpenters earn a median annual wage of $59,310, or $28.51 per hour, placing them about 20% above the median wage for all U.S. workers. Within the construction sector, carpenter pay falls near the middle, trailing plumbers and electricians but exceeding wages for roofers and painters.
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Wage levels vary widely by region, however, once cost of living is factored in. States such as Hawaii and Illinois top the rankings for adjusted carpenter pay, while many Southern states rank near the bottom due to lower prevailing wages and weaker labor protections.
According to the analysis, South Dakota carpenters earn an adjusted median annual wage of $52,784, below the national adjusted median but supported by the state’s relatively low cost of living. Actual median pay for carpenters in South Dakota stands at $46,500, slightly higher than the state’s median wage for all workers.
South Dakota also has a higher-than-average concentration of carpenters, reflecting the importance of the trade to the state’s construction and development activity. While wages trail national figures, lower housing and living costs help offset the gap compared to higher-cost states.
The report shows that Midwestern and West Coast states tend to offer the strongest wage outcomes for carpenters after adjusting for living costs, while Southeastern states generally lag behind. Metro areas such as Chicago, Minneapolis, and Sacramento rank among the top-paying large cities for carpenters nationwide.
Overall, the analysis suggests that carpentry remains a stable and relatively well-compensated career path — particularly for workers without a four-year college degree — even as broader construction activity moderates.
The full methodology and detailed rankings are available through Construction Coverage.
Originally reported by Voice Of Alexandria.
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