Construction Industry Adds 25,000 Jobs in September
Despite labor shortages, a total of 25,000 jobs on net were added in the construction industry in September according to data released by the U.S. Bureau of Labor Statistics.
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Both nonresidential and residential contractors are adding workers at a faster pace than most other industries according to analysis by both the Associated Builders and Contractors and Associated General Contractors of America.
“Construction job growth has remained strong,” said Ken Simonson, AGC’s chief economist. “The persistently low unemployment rate for jobseekers with construction experience and the high level of job openings suggest the industry would hire even more workers if they could find enough qualified applicants.”
Construction employment in September totaled 8,303,000, seasonally adjusted, an increase of 25,000 from August.
Data shows the sector has added 238,000 jobs or 3% during the past 12 months, nearly double the 1.6% increase for total nonfarm employment. Over the past 12 months, nonresidential contractors added 177,800 employees (3.7%) while residential construction firms added 60,500 (1.8%).
For September, nonresidential construction employment increased by 17,900 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 17,000 positions. Heavy and civil engineering added 3,800 jobs while nonresidential building lost 2,900 positions.
Average hourly earnings for production and nonsupervisory employees in construction—climbed by 4% over the year to $35.92 per hour. The increase slightly outpaced the gain in overall private sector pay for production workers, which rose 3.9% over 12 months to $30.33 per hour. That difference in hourly pay meant that construction workers earned a wage “premium” of more than 18% compared to the overall private sector.
Meanwhile, the construction unemployment rate increased to 3.7% in September, the fourth month in a row in which the rate has been lower than for the overall economy. Unemployment across all industries decreased from 4.2% in August to 4.1% last month.
“Beyond the construction industry, this jobs report blew past expectations,” said Anirban Basu, ABC chief economist. “U.S. employers added 254,000 jobs for the month, the most since March, and employment estimates for the previous two months were revised upward by a total of 72,000 jobs. While the ongoing strength of the labor market and consumer spending indicates that the economy has weathered high interest rates better than anyone thought possible, the combination of rising household debt levels and economic uncertainty surrounding geopolitics, and the looming election will potentially weigh on growth in the coming months.”
A separate recently released government report showed there were 370,00 job openings in construction at the end of August.
According to Basu it marked the largest one-month increase on record.
Industry job openings increased by 138,000 last month but are down by 16,000 from the same time last year.
Simonson noted that the total exceeded the 338,000 worked hired during the month, indicating the industry sought to hire more than twice as many workers as it was able to bring on board.
“Much of this surge is likely due to the effects of Hurricane Beryl on July’s job openings data,” Basu added. “Despite this bounce back, industrywide job openings are still down 19% since hitting a cyclical peak in February, a reflection of moderating activity in the face of high interest rates and economic uncertainty.”
He said labor is still scarce, especially for certain occupations, and many contractors still intend to increase their staffing levels over the next six months according to recent ABC surveys.
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