Monthly Increase in Nonresidential Hiring Outpaces Smaller Gains in Residential Construction; Overall Industry Unemployment Rate Edges Up, However, but Stays Below Overall National Rate
Construction employment increased by 19,000 positions in September as firms raised wages to bring on board workers more rapidly than other sectors, according to an analysis of new government data the Associated General Contractors of America released today. Association officials noted that firms continue to add employees to keep pace with demand for public sector projects and data centers, even as other segments of the industry are experiencing slowing demand.
“The employment data are consistent with the August spending numbers that show rising demand for public construction, including a large heavy-civil component,” said Macrina Wilkins, the association’s senior research analyst. “Those public-sector gains are being partly offset, however, by declining private sector demand for many types of construction projects.”
Construction employment in September totaled 8,305,000, seasonally adjusted, an increase of 19,000 from August. Headcount rose by 38,000 jobs or 0.5 percent during the past 12 months, just under the 0.8 percent growth rate in total nonfarm payroll employment. August’s figures were also revised downward, with the initially reported 7,000 job loss nearly doubling to 14,000, indicating the labor market was weaker heading into September than earlier estimates suggested
Nonresidential construction firms added 16,300 jobs in September, marking continued growth across much of the sector. Employment increased by 11,100 among nonresidential specialty trade contractors, while nonresidential building construction added 300 jobs and heavy and civil engineering gained 4,900. Meanwhile, residential construction employment rose by 3,100 jobs, driven by a gain of 3,900 in residential building, even as residential specialty trade contractors shed 800 positions.
Average hourly earnings for production and nonsupervisory employees in construction—including most onsite craft workers and many office staff—increased 4.0 percent over the year to $37.64. That gain exceeded the 3.8 percent rise in pay for such workers in the overall private sector. The unemployment rate among workers with recent construction experience inched up to 3.8 percent in September, but still sits below the overall nonfarm rate of 4.3 percent (not seasonally adjusted).
Association officials said the fact firms continued to add construction jobs during a period of uncertainty about whether the government would close and outstanding questions about future tariff rates shows contractors are optimistic demand will remain strong. They continued to urge federal officials to resolve trade disputes, set clear tariff levels and take steps to expand the construction workforce.
“Despite some significant economic uncertainties, construction firms remain optimistic enough to continue adding to their payrolls,” said Jeffrey D. Shoaf, the association’s chief executive officer. “The best way to sustain that momentum is by providing clarity about tariff levels, stabilizing materials prices and developing a more robust workforce.”
View the construction employment data.