The Year in Review
2025 was a crazy year to say the least, but as the calendar year changes, it is safe to say that the State of the Trades is strong! In this issue of the State of the Trades, we’re focusing on three principal areas:
- 2025 saw exceptional salary growth for the majority of skilled trade workers.
- Employers are requiring a more educated and highly trained workforce.
- Immigration enforcement and tariffs had real impacts on the industry.
It’s time to review the data and see how it is affecting your organization and how to plan for 2026.
1. Skilled Trade Wages Saw Significant Growth in 2025
The skilled trades is no exception to the age-old law of supply and demand. While Electricians have been fighting hard for the top spot, the HVAC industry is the most in-demand trade and saw the largest increase in average hourly pay. It is our estimation that salaries will continue to climb until the two months prior to the midterm elections.
- HVAC Technicians: averaging $45.19/hour. Their pay rose by $9.39/hour this year.
- Carpenters: averaging $39.63/hour. Their pay rose by $8.71/hour this year.
- Construction General Laborers: averaging $27.16/hour. Their pay rose by $5.88/hour this year.
- Plumbers: averaging $47.05/hour. Their pay rose by $3.69/hour this year.
- Electricians: averaging $44.21/hour. Their pay rose by $1.52/hour this year.
2. Employers are Demanding a More Educated and More Highly Trained Workforce
- 87% of Job Seekers hold at least a high school diploma. The secret is out, and Gen Z heard it loud and clear…the skilled trades provide both job security and great compensation in an ever-changing labor market. This is feeding a rush of young people opting away from traditional 4-year college and instead pursuing a trades education. Enrollment in trade schools has increased an incredible 19% for each of the last 3 years, and 42% of Gen Z are now either working in or working towards a career in the trades, and over 40% of those young people have a bachelor’s degree.
- 61% of Employers are requiring new hires to have at least a high school diploma. The ever growing use of sophisticated software technology, GPS-guided equipment, robotics, and of course, Artificial Intelligence (AI) has led employers to require their hires to be more highly trained than ever before. In 2025 alone, the percentage of employers requiring new hires to hold at least a High School diploma increased by 19% to 61%. The requirement for hires to have a post-secondary diploma or degree increased by 6%.
- Given the rapid expansion of AI and technology adoption across the trades, we anticipate the demand for post-secondary graduates to increase in 2026.
3. Immigration Enforcement and Tariffs Dominated the Headlines and Bottom-lines
The data clearly shows that Executive level policy changes lead to increased salaries, created greater demand in certain sectors, and generated regional job growth.
- Immigration policy changes and enforcement efforts changed the labor force. While the argument is made that President Trump’s immigration policy will increase labor cost and make housing even more unaffordable, the data unequivocally indicates that many employers were taking advantage of undocumented workers by paying them well below market rates. Salary theft is not only illegal but immoral, and no human being, regardless of their legal status, should be treated in such a manner.
- The share of companies requiring a clean criminal background in 2025 rose 18%.
- The share of companies requiring active driver’s licenses jumped 17% in 2025.
- Construction General Laborer averaging hourly salary rose $5.88/hour this year.
- Illinois and Wisconsin, states with significant immigration enforcement efforts in late 2025, became top 10 states for skilled trade job creation during Q4 for the first time in the history of this report.
- Tariffs created short-term price increases but are leading to the onshoring of manufacturing and warehousing jobs. With the demand for diesel on the rise (4% increase this year), interest rates declining, and tax incentives taking effect in the coming months, we anticipate a strong increase in the need for Manufacturing Technicians, Fabricators, and CNC Machinist/Programmers throughout 2026.
- 5 of the 7 “Rust Belt” states were included in the Top 10 States for skilled trade job creation in Q4.
- Welders and Forklift Operators made the Top 8 list for most in-demand trade jobs across the country.
- Immigration policy changes and enforcement efforts changed the labor force. While the argument is made that President Trump’s immigration policy will increase labor cost and make housing even more unaffordable, the data unequivocally indicates that many employers were taking advantage of undocumented workers by paying them well below market rates. Salary theft is not only illegal but immoral, and no human being, regardless of their legal status, should be treated in such a manner.
Meet BlueRecruit – Built for the Trades
BlueRecruitis a direct-hire marketplace for skilled-trade workers who want to build their careers and the companies seeking their talent. By eliminating resumes and job posts, BlueRecruit focuses on what matters most: skills, certifications, and experience.
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