Construction employment increased by 17,000 jobs in April and by 257,000 jobs over the past year while firms boosted pay to help recruit new workers, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that the increases in pay appear to be attracting more former construction workers back into the job market, but cautioned that labor conditions remain extremely tight.
"Many firms are boosting pay and taking other steps to compete for a relatively small pool of available, qualified workers to hire," said Stephen E. Sandherr, the association's chief executive officer. "While these steps appear to be luring more construction workers back to the job market, firms report they would hire even more workers if they could find enough qualified candidates."
Construction employment totaled 7,174,000 in April, a gain of 17,000 for the month and 257,000, or 3.7%, over 12 months. Construction employment is at the highest level since June 2008. Association officials pointed out that the year-over-year growth rate in industry jobs was more triple the 1.1% rise in total nonfarm payroll employment.
Hourly earnings in the industry averaged $29.63 in April, an increase of 3.5% from a year earlier. That put the average hourly earnings in construction 10.4% higher than the average for all nonfarm private-sector jobs, which rose 2.6% in the past year, to $26.84, Sandherr added.
The increases in pay appear to be attracting more people with prior construction experience back into the workforce, association officials added. They noted that the unemployment rate in construction increased from 6.3% a year ago to 6.5% last month. The number of unemployed job seekers with recent construction experience has increased 38,000 since April 2017.
Residential construction – comprising residential building and specialty trade contractors – grew by 7,500 jobs in April and added 125,500 jobs over the past 12 months, a 4.7% increase. Nonresidential construction – including building, specialty trades and heavy & civil engineering construction – employment grew by 7,600 jobs in April and increased by 131,700 during the past year, 3.1% increase.
Construction officials urged federal, state and local officials to take steps to make it easier for schools, construction firms and local associations to put in place construction-focused programs to recruit and prepare future construction workers. They noted that such measures would signal to more students that there are multiple paths to success in life.
"It is time to start showing more of our young adults that high-paying careers in construction should be on the list of professions they consider," Sandherr said. "Not every student needs to amass a mountain of college debt just to be able to make mediocre wages working in a fluorescent-lit cube farm."
Related Stories
Market Data | May 2, 2018
Construction employment increases in 245 metro areas between March 2017 & 2018, as trade fights & infrastructure funding shortfalls loom
Houston-The Woodlands-Sugar Land, Texas and Weirton-Steubenville, W.Va.-Ohio experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines.
Market Data | May 2, 2018
Nonresidential Construction down in March, private sector falters, public sector unchanged
February’s spending estimate was revised roughly $10 billion higher.
Market Data | Apr 30, 2018
Outlook mixed for renewable energy installations in Middle East and Africa region
Several major MEA countries are actively supporting the growth of renewable energy.
Market Data | Apr 12, 2018
Construction costs climb in March as wide range of input costs jump
Association officials urge Trump administration, congress to fund infrastructure adequately as better way to stimulate demand than tariffs that impose steep costs on contractors and project owners.
Market Data | Apr 9, 2018
Construction employers add 228,000 jobs over the year despite dip in March
Average hourly earnings increase to $29.43 in construction, topping private sector by nearly 10%; Association officials urge updating and better funding programs to train workers for construction jobs.
Market Data | Apr 4, 2018
Construction employment increases in 257 metro areas between February 2017 & 2018 as construction firms continue to expand amid strong demand
Riverside-San Bernardino-Ontario, Calif. and Merced, Calif. experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines in construction employment.
Market Data | Apr 2, 2018
Construction spending in February inches up from January
Association officials urge federal, state and local officials to work quickly to put recently enacted funding increases to work to improve aging and over-burdened infrastructure, offset public-sector spending drops.
Market Data | Mar 29, 2018
AIA and the University of Minnesota partner to develop Guides for Equitable Practice
The Guides for Equitable Practice will be developed and implemented in three phase.
Market Data | Mar 22, 2018
Architecture billings continue to hold positive in 2018
Billings particularly strong at firms in the West and Midwest regions.
Market Data | Mar 21, 2018
Construction employment increases in 248 metro areas as new metal tariffs threaten future sector job gains
Riverside-San Bernardino-Ontario, Calif., and Merced, Calif., experience largest year-over-year gains; Baton Rouge, La., and Auburn-Opelika, Ala., have biggest annual declines in construction employment.
