Construction Employment Climbs By 26,000 In March With Gains In Residential And Nonresidential Segments As Firms Boost Pay To Attract, Retain Workers

Average Construction Pay is Now Almost $39 an Hour as Employers Pay a Premium to Recruit from a Limited Pool of Qualified Workers, Association Urges Officials to Invest in Workforce Development & Boost Visas

Construction employment climbed by 26,000 jobs in March, with gains in both residential and nonresidential segments, according to an analysisof new government data released today by the Associated General Contractors of America. Association officials noted that the gains were welcome news, but the fact construction pay continues to be well above other sectors is a sign firms are struggling to find enough qualified workers.

"The increase in March more than offset the 13,000-position decline that occurred in February," said Ken Simonson, the association's chief economist. "It is especially heartening to see that the gains were present among all five subsectors of the industry."

Construction employment totaled 8,330,000, seasonally adjusted, in March, a pickup of 33,000 from February. Over the past 12 months, the industry has added 57,000 jobs, a gain of 0.7 percent, outpacing the 0.2 percent increase in total nonfarm payroll employment.

Residential construction firms added 14,300 jobs for the month, with gains of 11,200 positions among residential specialty contractors and 3,100 jobs among residential building contractors. Nonresidential construction employment rose by 12,200 jobs in March. Within that category, employment among nonresidential building contractors increased by 4,500 positions. Nonresidential specialty trade contractors added 3,900 jobs. Employment in heavy and civil engineering construction rose by 3,800 jobs for the month.

Average hourly earnings for production and nonsupervisory employees in construction-including most onsite craft workers and many office staff-rose to $38.62 in March, an increase of 5.0 percent over the past year. Average pay for these workers is now 20.4 percent higher than for all private sector production and nonsupervisory employees

Association officials said the growing wage gap between construction workers and the rest of the economy shows employers in the sector are paying a premium to attract talent. They noted that firms likely would have hired even more workers if they could find more qualified applicants. They urged Congress and the administration to take short- and long-term steps to attract more people into high-paying construction careers.

"Washington officials can help put more people into high-paying careers by boosting funding for construction training and education programs," said Jeffrey D. Shoaf, the association's chief executive officer. "Those investments will take time to make a difference, which is why they also should expand visa opportunities for qualified workers to lawfully enter the country and work in construction in the short-term."

View the construction employment data.