Construction firms in the United States added 15,000 jobs in June, according to an analysis of government data released by the Associated General Contractors of America. The increase is attributed to rising wages, which have enabled the industry to attract workers more rapidly than other sectors despite market uncertainties.
Macrina Wilkins, senior research analyst for the association, commented on the findings: “Today’s construction employment numbers show firms are eager to find and hire workers even amid broader market uncertainty.” She noted that hiring has been stronger than expected due to persistent labor shortages.
In June, construction employment reached a seasonally adjusted total of 8,324,000. This represents an increase of 121,000 jobs or 1.5 percent over the past year, surpassing the overall nonfarm payroll growth rate of 1.1 percent.
Nonresidential construction firms contributed significantly with an addition of 9,200 jobs in June. Employment among nonresidential specialty trade contractors rose by 12,400 positions. However, these gains were partially offset by losses in nonresidential building construction and heavy civil engineering construction sectors.
Residential construction saw an increase of 5,500 jobs driven mainly by residential specialty trade contractors gaining 6,000 positions while homebuilders and other residential building firms reduced their workforce by 500.
Average hourly earnings for production and nonsupervisory employees in construction increased by 4.6 percent over the year to $37.20 per hour. This rise outpaced the overall private sector wage growth of 3.9 percent.
The unemployment rate for workers with recent experience in construction fell to a near historic low of 3.4 percent in June compared to a general nonfarm rate of 4.4 percent. A separate report from BLS indicated there were still significant job openings at the end of May despite a decline from last year.
Association officials highlighted ongoing legislative developments as potential factors affecting future industry conditions. Jeffrey D. Shoaf, CEO of the association stated: “Anything that provides more certainty for the economy should help bring more private sector developers off the bench and boost demand for construction.”