Construction employment rises by 26,000 jobs as wages outpace other sectors

Construction employment increased by 26,000 jobs in March, with gains across residential and nonresidential segments, according to an analysis of federal data released by the Associated General Contractors of America.

The increase followed a revised decline of 13,000 jobs in February. Total construction employment reached 8,330,000, seasonally adjusted, an increase of 33,000 from the previous month. Over the past year, the industry added 57,000 jobs, a 0.7% increase, compared with a 0.2% rise in total nonfarm payroll employment.

“The increase in March more than offset the 13,000-position decline that occurred in February,” said Ken Simonson, the association’s chief economist. “It is especially heartening to see that the gains were present among all five subsectors of the industry.”

Residential construction added 14,300 jobs in March, including 11,200 positions among specialty trade contractors and 3,100 among building contractors. Nonresidential construction employment increased by 12,200 jobs, with gains of 4,500 in nonresidential building, 3,900 in specialty trades and 3,800 in heavy and civil engineering.

Average hourly earnings for production and nonsupervisory construction employees rose to $38.62 in March, up 5.0% over the past 12 months. Wages in the sector are now 20.4% higher than the average for production and nonsupervisory employees across all private industries.

Association officials said higher wages reflect ongoing labor shortages, with firms raising pay to attract and retain workers. They said additional hiring has been limited by a lack of qualified applicants and called for increased investment in workforce training and expanded visa access.

“Washington officials can help put more people into high-paying careers by boosting funding for construction training and education programs,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Those investments will take time to make a difference, which is why they also should expand visa opportunities for qualified workers to lawfully enter the country and work in construction in the short term.”