Why Electricians Are Earning Less Compared to the Average Worker

Electricians remain important in every community. They wire our homes, keep factories running, and handle the complex systems behind nearly every modern structure. Yet despite being in high demand, the gap between electricians’ wages and the average worker’s income has steadily narrowed since 2000.

According to federal labor data, in 2000 the median electrician earned roughly 53% more than the average U.S. worker. By 2024, that advantage had fallen to just 26%.

So what happened?

It’s not that electricians suddenly lost value,  it’s that the broader job market, cost of living, and workforce structure have changed in ways that don’t always show up in wage charts.

Rising Pay for Entry-Level Jobs Skews the Math

Over the past few years, large corporations have significantly increased base pay for retail, warehouse, and food service workers. When national chains raised wages to attract and retain staff after the pandemic, the median hourly pay for all workers jumped dramatically.

That shift raised the national “middle line” faster than skilled trades could adjust, especially in smaller, privately owned electrical firms that can’t match corporate wage growth.

So while electricians’ pay has continued to climb in real dollars, other sectors have risen faster, narrowing the relative gap.

More Apprentices, Fewer Journeymen

The current labor shortage has brought an influx of new apprentices. Many are still in training, earning half or less of what licensed electricians make.

Twenty-five years ago, the majority of electricians were experienced journeymen. Today, apprentices and helpers represent a larger percentage of the overall workforce. When you average all wages together, that pulls down the “median” number, even though top-tier electricians are still commanding strong rates.

That means the profession hasn’t devalued,  it’s just temporarily bottom-heavy.

As many of these apprentices advance in the next decade, overall wages are expected to rise again.

The Decline of Unions in the Trades

Union membership among construction and trade workers has dropped sharply since 2000, from nearly 14% to below 10%.

Union electricians often negotiate strong contracts that keep pace with inflation and include health insurance, retirement contributions, and continuing education. Non-union electricians, on the other hand, are often paid hourly by smaller contractors or non-union shops with less bargaining power.

That gap adds up. Union members typically maintain higher purchasing power over time, while non-union electricians often see slower raises and fewer benefits.

In many parts of the country, particularly across the South, the lack of union presence has translated into stagnant wages even as housing and living costs rise.

Regional Pay Gaps

Electricians’ pay varies widely by region. Industrial electricians in parts of Louisiana or Texas may earn around $40 an hour, while residential electricians in Florida,  a state with high demand and high living costs,  might still make under $30.

That imbalance comes down to market competition, state labor laws, and cost-of-living pressures. Ironically, electricians in some of the most expensive areas often earn the least relative to local expenses.

And while demand is rising everywhere, so is the number of contractors and subcontractors willing to take jobs for less. Some homeowners also hire unlicensed or under-the-table labor, which undercuts rates for qualified tradespeople.

The Cost of Staying Licensed and Insured

For legitimate electricians, staying compliant isn’t cheap.

An insured electrician must pay for liability coverage, sometimes workers' compensation, and all the licenses required by state or city regulations. Many also have to invest in tools, vehicles, continuing education, and safety certifications.

Those costs eat into take-home pay, but they’re important. Clients, general contractors, and property managers expect electricians to carry proper coverage. A single accident or code violation could cost far more than the premium for electrician insurance ever would.

Insurance also builds trust. Homeowners and commercial clients often check for it before hiring, because it protects both parties if something goes wrong on the job.

If you’re not quite in the trade, read: Is Being an Electrician a Good Trade to Get Into?

The Hidden Impact of Inflation

Even if electricians’ hourly wages rise slightly each year, those raises rarely keep pace with inflation, especially on housing, materials, and fuel.

Many tradespeople report earning $5–10 more per hour than they did a decade ago, yet their cost of living has doubled. For small business owners, material prices, insurance costs, and equipment have climbed even faster.

In other words, gross pay may be higher, but net purchasing power hasn’t improved much.

The “Owner’s Truck” Effect

A recurring frustration in trade conversations is watching business owners thrive while employees stagnate. When a company owner drives a new $150,000 truck while technicians make $25 an hour with no benefits, it’s easy to see why morale suffers.

That isn’t universal, many small electrical companies genuinely take care of their crews. But it reflects the broader problem: profits are often distributed unevenly across the trade.

Without collective bargaining or strong state regulations, wage growth depends on the individual employer.

Long-Term Outlook: The Shortage Will Correct the Market

Despite the short-term frustration, the long-term outlook for electricians remains strong. Demand is expected to rise steadily through the 2030s due to:

• The electrification of vehicles and infrastructure.
• Smart home installations and energy-efficient systems.
• Retirements among older electricians are creating labor shortages.

As apprentices become licensed and demand outpaces supply, market pressure should gradually lift wages again, especially for licensed, insured electricians who can take on commercial work or start their own businesses.

In short, the dip in relative pay isn’t permanent. It’s a temporary distortion in a growing industry.

How Electricians Can Protect Their Earning Power

Here’s what electricians can do now to strengthen their income potential:

1. Keep licenses and insurance current.

It makes you more competitive and gives you access to higher-paying contracts that unlicensed workers can’t legally touch.

2. Diversify skills.

Automation, renewable systems, and smart home tech are fast-growing specialties that command premium rates.

3. Build client relationships.

Private maintenance and referral work can often out-earn standard contractor wages.

4. Track business costs.

If you’re self-employed, adjust rates annually to reflect inflation, insurance, and materials.

5. Consider joining or organizing a union.

Union shops continue to maintain stronger benefits and inflation-adjusted pay.

Perception vs. Reality

On paper, electricians appear to be “falling behind.” In reality, the trade is expanding, wages are climbing, and new electricians are filling the pipeline faster than ever. The industry just needs time to rebalance.

Being a licensed, insured electrician still puts you far ahead of most workers in stability, job security, and long-term demand. The current wage data doesn’t tell the full story, it’s just a snapshot of an industry in transition.