Construction employment saw an increase of 8,000 jobs in October, according to new government data analyzed by the Associated General Contractors of America. The report also noted a rise in construction spending in September, along with higher hourly wages compared to other sectors.
“The job gains in construction occurred even though hurricanes in the Southeast probably dragged down hiring in previously fast-growing states,” said Ken Simonson, the association’s chief economist. “Contractors are hiring and raising hourly pay at above-average rates in an effort to keep projects on track.”
The total number of construction jobs reached 8,310,000 in October. Over the past year, the sector has added 223,000 jobs or 2.8 percent. Nonresidential contractors contributed significantly with 178,400 new employees (3.7 percent), while residential firms added 44,500 workers (1.3 percent).
Construction spending hit $2.15 trillion at a seasonally adjusted annual rate in September, marking a 0.1 percent increase from August and a 4.6 percent rise from September 2023.
Spending increased for data centers and infrastructure segments such as highways and transportation projects like airports and railways. However, multifamily housing and most private nonresidential categories experienced declines.
Average hourly earnings for construction workers rose by 4.5 percent over the year to $36.23 per hour, surpassing the overall private sector wage increase of 4.1 percent to $30.48 per hour.
Association officials expect continued growth in construction employment as hurricane recovery efforts proceed but emphasize ongoing labor shortages without increased funding for education and training programs or expanded visa availability.
“Hurricane season will end, but labor shortages aren’t going to go away just because we turned a page on the calendar,” said Jeffrey D. Shoaf, the association’s chief executive officer.
