Wage Growth Surges for Skilled Trade Workers as Labor Market Softens
This blog is based on the latest Q3-2025 report from BlueRecruit, revealing shifts in the skilled trades labor market. Two major insights define the quarter:
- Skilled trade wage growth is outpacing the broader economy
- The labor market is softening, and hiring requirements are tightening
Wage Growth in the Trades Is Outperforming the Economy
From June 2024 to June 2025, average wage growth across all U.S. sectors was 3.9%. But for skilled trades, the gains are significantly higher.
Electricians are seeing the biggest jump, now averaging $40.41/hour—up $1.93/hour in Q3 alone, a 5% increase in just three months. Demand continues to rise thanks to AI data centers and electrification projects nationwide, making electricians the most in-demand trade in the country.
Automotive Technicians also posted big gains, with wages up 10.44% from Q2, averaging $46.45/hour. While some hiring slowed due to parts shortages tied to ongoing tariffs, pay continues to climb in response to strong market demand.
Construction General Laborers experienced a smaller Q3 wage increase—just $0.18/hour—but since the 2024 Presidential election, pay has risen $3.48/hour, a 16% increase. As noted in previous State of the Trades reports, changes in immigration policy and enforcement are playing a major role in keeping these wages elevated.
Labor Market Softens, Hiring Requirements Tighten
While demand for trade professionals remains high, the labor market is shifting. More workers are looking for jobs, but employers are becoming more selective.
Job Seekers Are on the Move
July marked the highest number of skilled trade job seekers this year. Many are looking for more flexible schedules, better health benefits and higher pay. For employers, understanding these priorities is essential for running effective recruiting campaigns and building strong teams.
Hiring Requirements
As the job market loosens and immigration enforcement increases, employers are raising their hiring standards. Since the 2024 election:
- 58% of companies now require a clean criminal background (up 21 points)
- 72% require an active driver’s license (up 20 points)
For perspective, during the Q3-2022 labor shortage, only 20% of companies required clean records and just 33% required licenses.
This trend suggests a return to more traditional standards and a growing emphasis on long-term employability.
Meet BlueRecruit – Built for the Trades
BlueRecruit is a direct-hire marketplace for skilled-trade workers and the companies that need them. Unlike traditional job boards, BlueRecruit removes the noise—no resumes, no job posts—just verified skills, certifications, and experience that match what employers are actually hiring for.
For employers navigating wage changes and evolving hiring standards, BlueRecruit offers a streamlined way to find qualified talent fast.
