Construction Labor: Wage Growth Normalizing
• Despite some cooling in wage momentum, the construction labor market in both the United States and Canada remains structurally tight. From 2016 to 2019, average YOY construction labor cost growth was approximately 2.8% in Canada and 7.3% in the United States. In 2025, Canadian construction wages increased by roughly 5.2% YOY, while U.S. construction wage growth reached 5.8%—below its pre-pandemic average but still elevated relative to overall employment wage growth. • While moderating U.S. construction wage growth might suggest easing labor pressures, subdued construction activity has reduced labor demand. Over the past decade, wage growth has exceeded employment growth by roughly 2.5 times on average, widening to approximately 3.5 times in 2025. This pattern suggests that, despite softer hiring conditions, limited availability of skilled workers continues to sustain wage growth above 5% in the U.S. • Meanwhile, construction wage growth in Canada grew at a rate of 2.3 times to that of construction employment in 2025, largely in line with the country’s 10-year average of 2.6 times. This persistent divergence underscores a structurally constrained labor supply. With sector productivity data declining since 2016, rising wages translate directly to higher unit labor costs, reflecting a structurally higher cost baseline for the development sector.
U.S.: Construction Employment and Wages
Canada: Construction Employment and Wages
10% 15% 20% 25% 30% 35%
10% 15% 20% 25% 30% 35%
0% 5%
0% 5%
-15% -10% -5%
-15% -10% -5%
Construction Employment Construction Wages
Construction Employment Construction Wages
Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics; Quarterly data series
Source: Statistics Canada; Moody’s Analytics; Quarterly data series
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Cushman & Wakefield
Office Fit Out Cost Guide 2026
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