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Photo courtesy of James Kim Photography + PC Construction.
Photo courtesy of James Kim Photography + PC Construction.
Construction adds 22,000 jobs in July as wages rise
ColoradoBiz Staff //August 7, 2026//
In Brief:
- Construction employment reached 8.34 million in July
- Nonresidential construction added 20,000 jobs in July
- Average hourly earnings rose to $39.24 in July
- Ken Simonson cited premium pay to hire qualified workers
Construction firms added 22,000 jobs in July as employment and wages in the industry grew faster than the broader labor market, according to an Associated General Contractors of America analysis of federal data released Aug. 7.
Construction employment totaled a seasonally adjusted 8.34 million in July. The industry added 82,000 jobs over the past year, an increase of 1%, compared with a 0.2% increase in total nonfarm employment.
“The job gains in construction last month were the most since March, as firms continue to pay a premium to hire qualified workers,” said Ken Simonson, the association’s chief economist.
Most of the growth occurred in nonresidential construction, which added 20,000 jobs in July and 126,400 positions over the past year, a 2.6% increase. Residential builders and subcontractors added 2,100 workers during the month but lost 44,200 positions over 12 months.
Nonresidential specialty contractors added 15,400 jobs in July and 77,500 over the year. Nonresidential building firms added 4,200 jobs during the month and 27,800 over the year. Heavy and civil engineering construction added 400 positions in July and 21,100 since July 2025.
Average hourly earnings for construction production and nonsupervisory employees rose to $39.24 in July, 21.1% higher than the average for private-sector production workers. Construction pay increased 5.2% over the past year, compared with 3.2% for production workers across the private sector.
The association said future job growth could be affected by delays in approving a new federal transportation bill and efforts to restrict data center construction.
“Any interruption in funding for highways or permitting for data centers would lead to layoffs in several parts of the industry,” Simonson said.
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