U.S. reports record construction employment

ARLINGTON, VA. — U.S. construction firms added 24,000 employees in February according to analysis by the Associated General Contractors of America of new government data.

Construction employment totalled a record 7,918,000, seasonally adjusted, in February, an increase of 249,000 or 3.2 per cent from a year earlier. That growth rate exceeded the 2.9 per cent rise in total nonfarm employment.

Nonresidential firms, comprising nonresidential building and specialty trade contractors along with heavy and civil engineering construction firms, added 11,600 employees in February and 158,700 employees or 3.5 per cent more over 12 months. Residential building and specialty trade contractors together added 12,400 employees for the month and 90,300 employees or 2.8 per cent more over the year.

Pay levels in the construction industry climbed in February at a faster pace than in the overall private sector for the sixth-straight month. Average hourly earnings for production and nonsupervisory workers in construction, mostly hourly craft workers, rose by 6.1 per cent year over year, from $31.63 in February 2022 to $33.57 last month. That increase topped the 5.3-per-cent rise in average pay for all private sector production workers. Workers in construction now earn an average of 18.1-per-cent more per hour than in the overall private sector.

Association officials said while employment levels are now at record levels in the industry, future job gains will be hard given the lack of people who have been exposed to construction career opportunities. While firms have had success recruiting workers by offering higher pay levels, the pool of qualified workers remains tight.

“Average hourly earnings for craft and office workers in construction have consistently risen more sharply than across the private sector as a whole for several months,” said Ken Simonson, the association’s chief economist, in a statement. “That has helped the industry add employees at a strong clip, but many more are still needed.”