Construction sector employment increased by 25,000 jobs in September, with nonresidential and residential contractors adding workers at a faster rate than other industries. This information comes from an analysis of new government data released by the Associated General Contractors of America. The association highlighted that firms are increasing pay to attract more workers amid rising demand.
Ken Simonson, the association’s chief economist, stated, “Construction job growth has remained strong.” He noted that the low unemployment rate for jobseekers with construction experience and a high number of job openings indicate that the industry would hire more workers if enough qualified applicants were available.
In September, construction employment reached 8,303,000 on a seasonally adjusted basis. This represents an increase of 25,000 from August. Over the past year, the sector added 238,000 jobs or 3.0 percent—nearly double the overall nonfarm employment increase of 1.6 percent. Nonresidential contractors added 177,800 employees (3.7 percent), while residential construction firms added 60,500 (1.8 percent). The unemployment rate for those with recent construction experience was at 3.7 percent for four consecutive months.
A separate report indicated there were 370,000 job openings in construction at the end of August compared to only 338,000 hires during that month. Simonson remarked this shows an unmet demand for hiring twice as many workers as were actually employed.
Average hourly earnings for production and nonsupervisory employees in construction rose by 4.0 percent over the year to $35.92 per hour—an increase slightly higher than the overall private sector's rise of 3.9 percent to $30.33 per hour—giving construction workers an “18 percent premium” over their private-sector counterparts.
Association officials called on Congress to enhance funding for education and training programs under both the Workforce Innovation & Opportunity Act and Carl D. Perkins Career and Technical Education Act. They also urged federal authorities to expand work authorizations for lawful immigrants entering construction careers.
Jeffrey D. Shoaf, CEO of the association said: “The jobs report would have been even stronger if construction firms could find enough qualified workers to keep pace with demand.” He emphasized that federal efforts could help more individuals enter high-paying careers through increased exposure and work authorizations in construction fields.