Minnesota's landscape is constantly evolving, with new homes, commercial buildings, and infrastructure projects popping up across the state. Behind every blueprint and foundation stands a crucial workforce: construction professionals. According to data from the Minnesota Department of Employment and Economic Development (DEED), the demand for these skilled workers remains robust.
High demand is one factor pushing up wages in construction. The average annual wage for the construction industry in Minnesota was just over $85,500 in 2024, which was nearly $12,000 (or 16%) higher than the total of all industries in Minnesota. Average wages increased 22% in construction from 2020 to 2024, compared to an 18% increase across all industries.
A Solid Foundation: Current Employment Trends
DEED's Labor Market Information (LMI) office provides valuable insights into Minnesota's employment landscape. Recent reports indicate that the construction sector has been a steady contributor to the state's economy. While fluctuations occur, the long-term trend suggests a continued need for construction workers across various trades.
DEED's LMI analysts estimate that Minnesota may add more than 10,000 net new construction industry jobs from 2022 to 2032, a 7.6% growth rate, compared to 4.6% across all industries. At the occupational level, LMI analysts project a gain of just over 9,000 new jobs in Construction & Extraction, as well as more than 48,000 labor market exit openings. According to the 2023 Job Vacancy Survey, there were nearly 4,600 job vacancies in the Construction industry, and 2,700 vacancies for Construction & Extraction occupations.
Here’s a summary of employment trends:
- High Demand for Skilled Trades: DEED highlights the persistent demand for skilled tradespeople, including carpenters, electricians, plumbers, and heavy equipment operators. This demand is driven by both new construction and the need to replace retiring workers.
- Infrastructure Investment: Increased public and private investment in infrastructure projects, from roads and bridges to renewable energy installations, is fueling the demand for construction labor.
- Steady Growth: Minnesota has seen rapid growth in construction employment over the past several years, reflecting ongoing development and infrastructure projects.
Key Drivers of Demand
Several factors contribute to the ongoing demand for construction employment in Minnesota:
- Population Growth: Minnesota's growing population necessitates new housing, commercial spaces, and infrastructure to support its expanding communities.
- Aging Infrastructure: The state's aging infrastructure requires significant maintenance and upgrades, creating a continuous need for construction workers.
- Renewable Energy Projects: Minnesota's commitment to renewable energy sources, such as wind and solar, is driving the new energy projects that require construction labor.
- Commercial and Residential Development: Ongoing commercial and residential development projects contribute significantly to the demand for construction labor.
Challenges and Opportunities
While the demand for construction workers is strong, the industry faces some challenges:
- Workforce Shortage: A nationwide shortage of skilled tradespeople is affecting Minnesota, making it challenging for employers to find qualified workers.
- Aging Workforce: Many experienced construction workers are nearing retirement, creating a need for younger workers to fill the skills gap.
- Technological Advancements: The construction industry is increasingly adopting new technologies, requiring workers to possess updated skills.
Resources for Job Seekers and Employers
DEED and the Minnesota Deparment of Labor and Industry provide a wealth of resources for both job seekers and employers in the construction industry:
- CareerForceMN.com: CareerForce offers career counseling, job search assistance, and training opportunities; select this link for an overview of employment and training opportunities in the construction industry in Minnesota.
- Apprenticeship opportunities: there are many opportunities to earn while you learn in various construction fields.
- Labor Market Information (LMI): DEED's LMI analysts provide data and analysis on employment trends, wages, and occupational outlooks.
Looking Ahead
The future of construction employment in Minnesota looks promising. With ongoing infrastructure projects, residential and commercial development, and a growing focus on renewable energy, the demand for skilled construction workers is expected to remain strong. By addressing the workforce shortage and embracing technological advancements, Minnesota can ensure a robust and thriving construction industry for years to come.
- Want to explore opportunities in the construction industry but need help getting started? Contact staff at a CareerForce location near you.
