China's Construction Industry Loses 14M Workers Despite Top Pay

Construction Pays the Most, but Workers Are Leaving

China's construction industry has lost more than 14 million migrant workers between 2021 and 2025, despite consistently offering the highest monthly wages among the country's 6 major employment sectors. The data, published April 30 by China's National Bureau of Statistics (NBS) in its 2025 Migrant Worker Monitoring Report, reveals a dramatic labor reallocation underway in the world's second-largest economy.

The total migrant worker population in China surpassed 300 million for the first time, reaching 301.15 million. Average monthly income also crossed a milestone, hitting 5,075 yuan (approximately $700) — up 114 yuan from the prior year.

Where Are the Workers Going?

The exodus from construction aligns with China's well-documented real estate downturn, which has hammered developers like Evergrande and Country Garden and slashed new housing starts across the country. As construction demand contracts, workers are pivoting — and manufacturing is absorbing them.

Key findings from a decade of NBS migrant worker reports include:

• Construction wages rank #1 among 6 major migrant worker industries for the past 4 consecutive years
• 14 million+ workers left the construction sector between 2021 and 2025
• Manufacturing gained 5.6 million migrant workers over the same 5-year period
• Total migrant workforce surpassed 300 million for the first time
• Average monthly income crossed the 5,000 yuan mark ($700 USD)

The manufacturing sector's turnaround is notable. Employment in factories had been declining before 2021, but the trend reversed sharply as China doubled down on industrial policy, electric vehicles, and export-driven manufacturing.

A Structural Shift With Global Implications

This labor migration carries significant implications for global supply chains and China's economic trajectory. The shift from construction to manufacturing reflects Beijing's broader strategic pivot away from real estate-driven growth toward advanced manufacturing and technology exports.

For Western companies sourcing from China, the influx of labor into manufacturing could help moderate wage pressures in factory settings — even as overall migrant worker incomes continue their steady upward climb. Over the past decade, NBS data shows migrant wages have risen consistently year over year.

However, the construction sector's labor drain also signals deeper trouble for China's property market recovery. Fewer available workers could raise costs for any future construction rebound, creating a feedback loop that makes new projects less economically viable.

What Comes Next for China's Labor Market

The divergence between construction and manufacturing employment is likely to accelerate. China's government continues to prioritize what it calls 'new productive forces' — AI, semiconductors, EVs, and robotics — all of which depend on manufacturing labor rather than construction crews.

As automation and AI-powered tools increasingly enter Chinese factories, the question becomes whether the manufacturing sector can continue absorbing displaced construction workers. The 5.6 million net gain over 5 years represents only a fraction of the 14 million who left building sites.

The remaining gap suggests millions of workers have either returned to agricultural work in rural areas, moved into the services sector, or exited the labor force entirely — a trend that mirrors aging demographic pressures across China's working population.