Construction employment increased by 17,000 jobs in April and by 257,000 jobs over the past year while firms boosted pay to help recruit new workers, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that the increases in pay appear to be attracting more former construction workers back into the job market, but cautioned that labor conditions remain extremely tight.
"Many firms are boosting pay and taking other steps to compete for a relatively small pool of available, qualified workers to hire," said Stephen E. Sandherr, the association's chief executive officer. "While these steps appear to be luring more construction workers back to the job market, firms report they would hire even more workers if they could find enough qualified candidates."
Construction employment totaled 7,174,000 in April, a gain of 17,000 for the month and 257,000, or 3.7%, over 12 months. Construction employment is at the highest level since June 2008. Association officials pointed out that the year-over-year growth rate in industry jobs was more triple the 1.1% rise in total nonfarm payroll employment.
Hourly earnings in the industry averaged $29.63 in April, an increase of 3.5% from a year earlier. That put the average hourly earnings in construction 10.4% higher than the average for all nonfarm private-sector jobs, which rose 2.6% in the past year, to $26.84, Sandherr added.
The increases in pay appear to be attracting more people with prior construction experience back into the workforce, association officials added. They noted that the unemployment rate in construction increased from 6.3% a year ago to 6.5% last month. The number of unemployed job seekers with recent construction experience has increased 38,000 since April 2017.
Residential construction – comprising residential building and specialty trade contractors – grew by 7,500 jobs in April and added 125,500 jobs over the past 12 months, a 4.7% increase. Nonresidential construction – including building, specialty trades and heavy & civil engineering construction – employment grew by 7,600 jobs in April and increased by 131,700 during the past year, 3.1% increase.
Construction officials urged federal, state and local officials to take steps to make it easier for schools, construction firms and local associations to put in place construction-focused programs to recruit and prepare future construction workers. They noted that such measures would signal to more students that there are multiple paths to success in life.
"It is time to start showing more of our young adults that high-paying careers in construction should be on the list of professions they consider," Sandherr said. "Not every student needs to amass a mountain of college debt just to be able to make mediocre wages working in a fluorescent-lit cube farm."
Related Stories
Designers | Oct 19, 2022
Architecture Billings Index moderates but remains healthy
For the twentieth consecutive month architecture firms reported increasing demand for design services in September, according to a new report today from The American Institute of Architects (AIA).
Market Data | Oct 17, 2022
Calling all AEC professionals! BD+C editors need your expertise for our 2023 market forecast survey
The BD+C editorial team needs your help with an important research project. We are conducting research to understand the current state of the U.S. design and construction industry.
Market Data | Oct 14, 2022
ABC’s Construction Backlog Indicator Jumps in September; Contractor Confidence Remains Steady
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5.
Market Data | Oct 12, 2022
ABC: Construction Input Prices Inched Down in September; Up 41% Since February 2020
Construction input prices dipped 0.1% in September compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.
Laboratories | Oct 5, 2022
Bigger is better for a maturing life sciences sector
CRB's latest report predicts more diversification and vertical integration in research and production.
Market Data | Aug 25, 2022
‘Disruptions’ will moderate construction spending through next year
JLL’s latest outlook predicts continued pricing volatility due to shortages in materials and labor
Market Data | Aug 2, 2022
Nonresidential construction spending falls 0.5% in June, says ABC
National nonresidential construction spending was down by 0.5% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Jul 28, 2022
The latest Beck Group report sees earlier project collaboration as one way out of the inflation/supply chain malaise
In the first six months of 2022, quarter-to-quarter inflation for construction materials showed signs of easing, but only slightly.
Hotel Facilities | Jul 28, 2022
As travel returns, U.S. hotel construction pipeline growth follows
According to the recently released United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. construction pipeline stands at 5,220 projects/621,268 rooms at the close of 2022’s second quarter, up 9% Year-Over-Year (YOY) by projects and 4% YOY by rooms.
Codes and Standards | Jul 22, 2022
Hurricane-resistant construction may be greatly undervalued
New research led by an MIT graduate student at the school’s Concrete Sustainability Hub suggests that the value of buildings constructed to resist wind damage in hurricanes may be significantly underestimated.
