Non-Union Labor Dominates in 24 States
An analysis of 2025 union membership data found that at least 90% of construction workers in 24 states did not belong to a union. According to the report from Associated Builders and Contractors, there were a record 9 million nonunion construction workers in the U.S. last year, compared to 995,000 union members.
- The slight increase in the construction unionization rate to 11.1% in 2025, up from a historic low of 10.3% in 2024, was driven in part by a boom in data center construction and public works projects. Despite this uptick, the overall trend has been a steep decline from 39.5% union membership in the construction industry 50 years ago. - Many of the states with low union density have "right-to-work" laws, which prohibit requiring employees to join a union as a condition of employment. Studies have found that such laws are associated with a nearly 13 percentage point reduction in unionization and over a 4% wage decrease in highly unionized industries like construction. - The Associated Builders and Contractors (ABC), the trade group that produced the analysis, advocates for a "merit shop" philosophy and opposes government-mandated project labor agreements (PLAs), which they argue drive up costs by 12% to 18% by favoring union contractors. - The construction industry faces a significant labor shortage and will need to attract an estimated 349,000 new workers in 2026 to meet demand. A large portion of this demand is driven by the retirement of an aging workforce rather than by new growth in construction spending. - For business graduates, common entry points into construction management include roles like project engineer, business development manager, risk manager, and project manager. A business degree provides a strong foundation in crucial areas like financial management, project management, and business principles. - Key transferable skills for business students entering construction management include cost estimation, budgeting, contract administration, and business development. Certifications like Associate Constructor (AC) are designed for recent graduates transitioning into the industry. - While overall construction spending growth is forecast to be modest, specific sectors are booming. The market for data center construction is expected to see the most growth, followed by power facilities, driven by the expansion of AI and cloud computing.
