Gen Z Shifts to Construction Jobs, Bucking Summer Employment Trends…

Event summary

Employment Hero's August payroll data shows Gen Z employment in construction rose 11.3% between May and August, nearly triple the 3.9% growth in retail and hospitality.
Construction ranked second among all sectors for full-time headcount growth in August, behind manufacturing.
The trend is sustained, with positive quarter-on-quarter growth in construction since the start of 2026.
Data sample includes 4,804 businesses and 166,291 employees.

The big picture

As traditional summer jobs in retail and hospitality decline due to rising employment costs and fewer entry-level opportunities, Gen Z workers are increasingly turning to trade industries like construction. This shift aligns with broader trends where AI is making some routine office roles less secure, while hands-on work offers practical skill development. Employment Hero's data suggests this is not a temporary phenomenon but part of a sustained structural change in youth employment patterns.

What we're watching

Sector Attractiveness: Whether construction can sustain its appeal to Gen Z as a long-term career path beyond summer employment.
Training Investments: How employers in trade industries will respond by developing clear progression and training routes for younger workers.
Automation Impact: The pace at which AI-driven automation in office roles will further push younger workers toward hands-on, trade-based employment.