Construction Employment Increases By 17,000 In May As Both Nonresidential And Residential Firms Add Jobs; Hourly Pay Rises By 5.0 Percent For The Year

Industry Employment and Wage Gains Continue to Outpace Overall Labor Market But Future Job Growth May Stall from Growing Community Backlash to Data Centers, Risk Congress Won't Pass New Highway Bill on Time

Construction firms added 17,000 jobs in May, as pay for craft workers climbed faster than for production workers overall, according to an analysis by the Associated General Contractors of America of new government data released today. Association officials noted that demand for new data centers and other nonresidential projects has enabled contractors to add workers and boost pay faster than employers overall.

"In contrast to the modest job gains in the broader economy, nonresidential construction firms keep adding workers and boosting pay," said Ken Simonson, the association's chief economist. "The sector has strong demand from data centers and related power and manufacturing projects, all of which require highly paid, skilled workers."

Construction employment totaled 8,337,000 in May, seasonally adjusted, an increase of 17,000 from April. Over the past 12 months, the industry has added 68,000 jobs, an increase of 0.8 percent, outpacing the 0.3 percent increase in total nonfarm payroll employment.

Nonresidential construction employment increased by 15,700 positions in May and by 101,500 positions or 2.1 percent over the past 12 months. Employment among nonresidential specialty trade contractors increased by 11,400 jobs for the month and 57,400 jobs over the year, while nonresidential building contractors added 1,700 employees in May and 18,200 over 12 months. Heavy and civil engineering construction employment increased by 2,600 positions for the month and 25,900 since May 2025.

Meanwhile, residential construction employment inched up by 900 positions in May and fell by 33,300 positions over the past 12 months. Residential specialty trade contractors added 2,600 positions for the month but shed 25,100 employees over the year, while residential building contractors cut 1,700 jobs in May and 8,200 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 $38.97 per hour in May. That figure is 20.6 percent higher than the average for all private-sector production employees. Construction pay rose by 5.0 percent over the past year, compared to a 3.6 percent gain for production workers in the overall private sector.

Association officials noted that demand for data centers continues to drive much of the growth in construction activity and employment. They noted, however, that growing community backlash - based on misconceptions about the facilities - threatens to undermine future growth in construction employment. They also noted that if Congress fails to pass a new highway and transit bill by the end of September, construction employment levels are likely to suffer.

"The construction industry will continue to add jobs and boost pay as long as demand remains strong," said Jeffrey D. Shoaf, the chief executive officer of the Associated General Contractors of America. "But if politicians restrict that demand, or fail to invest in new projects, then construction employment will suffer."

View the construction employment data.