Construction sector employment increased by 11,000 positions in April, driven by rising wages that allowed the industry to add workers more swiftly than other sectors. This information is based on an analysis of new government data released by the Associated General Contractors of America.
"The construction industry continued to add workers at a faster clip than other sectors in April as the industry boosted pay more than other private employers," said Ken Simonson, the association's chief economist. However, Simonson warned that the uncertainty surrounding tariffs and policy changes might slow down projects and employment growth.
The total construction employment in April was 8,316,000, an increase of 11,000 from March. Over the past year, construction jobs increased by 218,000, or 2.7 percent, which is higher than the 1.4 percent growth rate in total nonfarm payroll employment.
Nonresidential construction firms made significant contributions, adding 8,000 workers. Gains included 4,900 among specialty trade contractors and 3,600 in nonresidential building construction firms. These gains offset a decline of 500 workers at heavy and civil engineering construction firms. Residential construction employment also grew by 3,400, despite a reduction of 700 workers in homebuilding and other residential construction firms.
Workers in the construction industry experienced a 4.5 percent increase in average hourly earnings, bringing the hourly rate to $36.96. This wage growth outpaced the 4 percent rise in the overall private sector.
The unemployment rate among construction workers rose to 5.6 percent in April, up from 5.2 percent a year ago. Simonson noted this uptick could indicate a softening in labor demand, although many firms are retaining their current employees.
Despite the positive monthly job gains, industry officials expressed concerns about labor shortages and the potential impact of new tariffs on construction costs. Jeffrey D. Shoaf, the association's chief executive officer, stated, "Keeping construction costs stable is key to jumpstarting many projects that have been stalled by market uncertainties." He emphasized the importance of encouraging more individuals to consider construction careers and mitigating tariff impacts.
The association is collaborating with the Trump administration and Congress to increase funding for construction education and training as part of efforts to address these challenges.