The construction sector added 27,000 jobs in June while its unemployment rate fell to 3.6 percent, the lowest rate for the month, and pay levels in the industry continued to rise, according to an analysis of new government data released by the Associated General Contractors of America. Association officials indicated that construction firms are increasing pay and taking other measures to recruit workers amid tight labor conditions.
“Construction employment strengthened in June, with all segments adding workers despite recent weakness in demand for residential and commercial buildings,” said Ken Simonson, the association’s chief economist. “Finding enough qualified workers remains a greater challenge for most firms than finding projects to work on.”
Construction employment in June totaled 8,245,000, seasonally adjusted, an addition of 27,000 or 0.3 percent from the previous month. The sector has added 235,000 jobs over the past twelve months, an increase of 2.9 percent. Nonresidential construction firms—nonresidential building and specialty trade contractors along with heavy and civil engineering construction firms—added 21,200 employees in June. Meanwhile, employment at residential building and specialty trade contractors grew by only 5,500 or 0.2 percent.
The unemployment rate among jobseekers with construction experience declined from 3.6 percent in June 2023 to 3.3 percent this year—the lowest June rate in the 24-year history of the data. A separate government report released earlier this week indicated that new hires in construction at the end of May totaled 383,000, growing by 3 percent from one year prior. This figure does not account for workers who left the industry during the same timeframe.
Average hourly earnings for production and nonsupervisory employees in construction—covering most onsite craft workers as well as many office workers—increased by 4.6 percent over the year to $35.64 per hour. Construction firms provided a wage “premium” of nearly 19 percent compared to average hourly earnings for all private-sector production employees.
Association officials welcomed the increase in construction employment but noted that firms would likely have added even more jobs if more qualified workers were available to hire. They stated that labor shortages are preventing some firms from bidding on projects and limiting competition within the industry.
“Boosting investments in programs that expose more students to high-paying careers in construction will put more workers on a path to middle-class prosperity,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Until public officials boost those investments, however, the lack of workers will undermine construction activity and constrain employment growth.”
