Construction sector employment rose by 8,000 jobs in October following a small increase in spending in September as the industry hiked hourly wages at a faster rate than other industries, according to an analysis of new government data the Associated General Contractors of America released today. Association officials said employment gains for the month were likely impacted by hurricanes hitting fast growing regions and the ongoing impacts of construction labor shortages.
“The job gains in construction occurred even though hurricanes in the Southeast probably dragged down hiring in previously fast-growing states,” said Ken Simonson, the association’s chief economist. “Contractors are hiring and raising hourly pay at above-average rates in an effort to keep projects on track.”
Construction employment in October totaled 8,310,000, seasonally adjusted, an increase of 8,000 from September. The sector has added 223,000 jobs or 2.8 percent during the past 12 months, double the 1.4 percent increase for total nonfarm employment. Over the past 12 months, nonresidential contractors added 178,400 employees (3.7 percent), while residential construction firms added 44,500 workers (1.3 percent).
A separate government report today showed construction spending totaled $2.15 trillion at a seasonally adjusted annual rate in September. That was an increase of 0.1 percent from the August rate and 4.6 percent from September 2023.
Spending rose for data centers and most infrastructure segments, Simonson noted. Data center construction increased 0.6 percent for the month and 48 percent over 12 months. Highway and street construction climbed 0.4 percent and 1.5 percent, respectively, and investment in transportation projects such as airports and rail rose 0.8 percent and 7.2 percent, respectively. But spending on multifamily housing and most private nonresidential segments other than data centers declined in September, Simonson added.
Average hourly earnings for production and nonsupervisory employees in construction—covering most onsite craft workers as well as many office workers—climbed by 4.5 percent over the year to $36.23 per hour. The increase topped the gain in overall private sector pay for production workers, which rose 4.1 percent over 12 months to $30.48 per hour. That difference in hourly pay meant that construction workers earned a wage “premium” of 18.9 percent compared to the overall private sector.
Association officials said construction employment should continue to grow, especially as parts of the country rebuild from hurricane damages. But they said the industry would continue to struggle to find enough workers until federal officials boost funding for construction education and training programs. And they continued to urge Congress and the administration to expand the number of visas available to skilled people willing to work in needed construction jobs.
“Hurricane season will end, but labor shortages aren’t going to go away just because we turned a page on the calendar,” said Jeffrey D. Shoaf, the association’s chief executive officer.
View the construction employment data.
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