Construction employment has increased in 245 out of 358 metropolitan areas from August 2023 to August 2024, according to an analysis by the Associated General Contractors of America. The rise is attributed to construction firms raising wages more rapidly than other sectors to attract workers.
Ken Simonson, the association’s chief economist, stated, “More than two-thirds of metro areas have added construction workers in the past year.” Despite this growth, many contractors report difficulties finding qualified workers for open positions even with rising industry wages.
In August 2024, construction employees earned an average wage of $38.36 per hour, a 4.4 percent increase from the previous year. This rate surpasses the 3.8 percent wage gain for all private sector workers and is nearly nine percent higher than the all-private average hourly earnings of $35.21.
Houston-The Woodlands-Sugar Land, Texas saw the largest job gains with an addition of 15,900 jobs or seven percent over the year. Other significant increases were noted in Las Vegas-Henderson-Paradise, Nevada; Northern Virginia; Baton Rouge, Louisiana; and Miami-Miami Beach-Kendall, Florida. Kahului-Wailuku-Lahaina, Hawaii experienced the highest percentage increase at 18 percent with an addition of 800 jobs.
Conversely, construction employment declined in 70 metro areas and remained unchanged in 43 areas during this period. New York City faced the most substantial job loss with a decrease of 8,600 jobs or six percent. Other cities experiencing declines include Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin; Denver-Aurora-Lakewood, Colorado; San Jose-Sunnyvale-Santa Clara, California; and Portland-Vancouver-Hillsboro, Oregon-Washington. Duluth, Minnesota-Wisconsin recorded the largest percentage decrease at eleven percent.
The association's officials urged public authorities to promote construction career opportunities among students and workers due to competitive pay rates that do not require a college degree or associated debt.
Jeffrey D. Shoaf, CEO of the association said: “Too many students and workers out there have never been exposed to the many opportunities available to them in the construction industry.”