Wisconsin’s construction industry employs 140,992 workers—5.5% of the state’s total workforce—ranking it 14th lowest in the nation for construction employment share, according to a recent analysis by Construction Coverage.

This relatively small slice of the labor market comes at a time when the U.S. construction sector is navigating mixed economic signals. Demand for new housing and infrastructure projects remains elevated, driven by a persistent housing shortage and federal investment in public works. Yet the sector faces real challenges: skilled labor remains in short supply, construction spending has cooled in recent months, and higher interest rates have tempered private investment.

Historically, construction employment has closely tracked economic cycles, expanding during booms and contracting during downturns. Following the COVID-19 pandemic, the sector rebounded sharply, with U.S. construction employment topping 8.1 million in 2024, representing 6.1% of private-sector jobs. However, Wisconsin’s share remains below the national average, reflecting a more diversified state economy with manufacturing, agriculture, healthcare, and technology also playing major roles.

The Construction Coverage report found that laborers (11.0%), first-line supervisors (7.7%), and carpenters (7.3%) make up more than a quarter of all U.S. construction jobs. Other key trades—electricians (7.2%), plumbers (4.6%), and HVAC technicians (3.7%)—are also vital to both residential and commercial projects. Wisconsin mirrors many of these national patterns, but industry experts note that the state’s smaller construction employment share could limit workforce availability for large-scale projects if demand spikes.

Regional differences across the U.S. are stark. The Mountain West dominates the list of states most reliant on construction employment, with Wyoming leading at 11.0%. In contrast, many Northeast and Midwestern states—including Wisconsin—see construction playing a smaller role in their economies.

The year-over-year change in Wisconsin’s construction workforce, however, is a bright spot: employment in the sector rose 3.4%, outpacing the national growth rate of 2.3%. This growth is supported by ongoing transportation projects, commercial developments, and an emphasis on infrastructure upgrades.

The report underscores that states with lower construction employment shares may be less exposed to sudden downturns in the sector—but may also miss out on the economic gains of large-scale building booms. For Wisconsin, the challenge will be ensuring a skilled labor pipeline to meet the needs of both public and private projects in the years ahead.

Originally reported by Construction Coverage in WV'S News.