Industry Employment Continues to Outpace Overall Job Growth Amid Strong Demand for Data Centers and Other Nonresidential Projects as Firms Continue to Boost Wages to Attract Workers
Construction employment rose by 9,000 jobs in April, as gains in nonresidential construction offset declines in residential activity, according to an analysis of new government data released today by the Associated General Contractors of America. Association officials said the latest employment figures align with federal job openings data showing contractors continue to retain workers and hire selectively despite broader economic uncertainty.
“The reason many construction firms added jobs last month is because of the strong demand for nonresidential projects, particularly for data centers,” said Macrina Wilkins, the association’s director of market insights. “Construction firms are paying a growing premium to attract enough people to be able to complete data centers and other projects.”
Construction employment totaled 8,321,000 in April, seasonally adjusted, an increase of 9,000 from March. Over the past 12 months, the industry has added 50,000 jobs, an increase of 0.6 percent, slightly outpacing the 0.2 percent increase in total nonfarm payroll employment.
Nonresidential construction employment increased by 19,000 positions in April and added 98,600 jobs over the past 12 months. Employment among nonresidential specialty trade contractors increased by 12,600 jobs for the month and 57,700 jobs over the year, while nonresidential building contractors added 5,600 employees in April and 18,600 over 12 months. Heavy and civil engineering construction employment increased by 800 positions for the month and 22,300 over the year.
Meanwhile, residential construction employment declined by 10,400 jobs in April and 49,200 positions over the past 12 months. Residential specialty trade contractors lost 8,900 positions for the month and 42,100 over the year, while residential building contractors shed 1,500 jobs in April and 7,100 over 12 months.
Average hourly earnings for production and nonsupervisory employees in construction, which covers most onsite craft workers as well as many office staff, increased to $38.73 per hour in April. That figure is 20.2 percent higher than the average for all private-sector production employees. Construction pay increased by 4.8 percent over the past year, compared to a 3.7 percent increase for production workers in the overall private sector.
Association officials noted that one of the fastest growing nonresidential construction segments continues to be data centers. They cautioned, however, that growing community push back to the construction of those facilities threatens to undermine overall construction job growth.
“Data center construction is one of the main reasons the construction industry continues to add jobs and boost wages faster than the overall economy,” said Jeffrey D. Shoaf, the chief executive officer of the Associated General Contractors of America. “The more communities do to restrict construction of data centers, the more likely future construction growth will be dampened or even decline.”
View the construction employment data.