Construction employment was up 8,000 jobs in October, following a small increase in spending in September as the industry hiked hourly wages faster than other industries, according to an Associated General Contractors of America (AGC) analysis of government data.
Association officials say hurricanes and the ongoing impacts of construction labor shortages likely impacted employment gains for the month.
“The job gains in construction occurred even though hurricanes in the Southeast probably dragged down hiring in previously fast-growing states,” says Ken Simonson, AGC’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 more than 8.3 million jobs, seasonally adjusted, an increase of 8,000 from September. The sector added 223,000 jobs (2.8 percent) over the past 12 months. Since October 2023, nonresidential contractors added 178,400 employees (3.7 percent), while residential construction firms added 44,500 workers (1.3 percent).
Construction spending, earning
A separate government report shows 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 compared to September 2023.
Data center construction increased 0.6 percent for the month and 48 percent year over year. Highway and street construction climbed 0.4 percent in September and 1.5 percent over the last 12 months, and investment in transportation projects such as airports and rail rose 0.8 percent and 7.2 percent in those time frames. However, spending on multifamily housing and most private nonresidential segments other than data centers declined in September.
Average hourly earnings for production and nonsupervisory employees in construction – covering most onsite craft workers and many office workers – climbed 4.5 percent over the year to $36.23 per hour. The increase topped 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 construction workers earned a wage “premium” of 18.9 percent compared to the private sector.
Association officials say construction employment should continue to grow, especially as parts of the country rebuild from hurricane damages. However, they say the industry will continue to struggle to find enough workers until federal officials boost funding for construction education and training programs.
AGC continues 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,” says Jeffrey Shoaf, AGC’s CEO.
