Construction employment increased by 9,000 jobs in April, with growth in nonresidential construction balancing out declines in the residential sector, according to a May 8 release from the Associated General Contractors of America. The association said these figures reflect federal job openings data showing that contractors are retaining workers and hiring selectively amid broader economic uncertainty.
The topic is significant because construction industry employment continues to outpace overall job growth. Demand for data centers and other nonresidential projects remains strong, leading firms to increase wages as they compete for skilled workers.
“The reason many construction firms added jobs last month is because of the strong demand for nonresidential projects, particularly for data centers,” said Macrina Wilkins, the association’s director of market insights. “Construction firms are paying a growing premium to attract enough people to be able to complete data centers and other projects.”
In April, total construction employment reached 8,321,000 on a seasonally adjusted basis. Over the past year, the industry has added 50,000 jobs—a rise of 0.6 percent—slightly ahead of the overall increase in total nonfarm payrolls at 0.2 percent. Nonresidential construction gained 19,000 positions during April and added nearly twice as many jobs over twelve months compared to residential construction segments.
Average hourly earnings for production and nonsupervisory employees in construction rose to $38.73 per hour last month—20.2 percent higher than average pay across all private-sector production employees—with annual wage growth at 4.8 percent compared with a national average increase of 3.7 percent.
Association officials pointed out that one of the fastest-growing segments is data center construction but warned that increasing community opposition could impact future job growth within this area: “Data center construction is one of the main reasons the construction industry continues to add jobs and boost wages faster than the overall economy,” said Jeffrey D. Shoaf, chief executive officer of Associated General Contractors of America. “The more communities do to restrict construction of data centers, the more likely future construction growth will be dampened or even decline.”
The Nevada Chapter of Associated General Contractors supports Nevada’s builders by offering resources and promoting involvement across civic affairs and state legislation; it represents general and specialty contractors under its charter according to its official website.
