Construction sector employment rose by 8,000 jobs in October 2024 following a small increase in spending the previous month as the industry hiked hourly wages at a faster rate than other industries, according to an analysis of recent government data by the Associated General Contractors of America.
Association officials said employment gains for the month were likely impacted by hurricanes hitting fast-growing regions and the ongoing impacts of construction labor shortages.
“The job gains in construction occurred even though hurricanes in the Southeast probably dragged down hiring in previously fast-growing states,” said Ken Simonson, AGC’s Chief Economist. “Contractors are hiring and raising hourly pay at above-average rates in an effort to keep projects on track.”
Construction employment in October 2024 totaled 8,310,000, seasonally adjusted — an increase of 8,000 from September. The sector added 223,000 jobs, or 2.8 percent, during the past 12 months, double the 1.4 percent increase for total nonfarm employment.
Nonresidential construction employment increased by 13,500 for the month (up 300 at building firms, up 13,500 at specialty trade contractors, but down 1,100 at heavy and civil engineering construction firms).
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A separate government report showed construction spending totaled $2.15 trillion at a seasonally adjusted annual rate in September 2024. That was an increase of 0.1 percent from the August rate and 4.6 percent from September 2023.
Spending rose for data centers and most infrastructure segments, Simonson noted. Data center construction increased 0.6 percent for the month and 48 percent over 12 months. Highway and street construction climbed 0.4 percent and 1.5 percent, respectively, and investment in transportation projects such as airports and rail rose 0.8 percent and 7.2 percent, respectively.
Average hourly earnings for production and nonsupervisory employees in construction — covering most onsite craft workers as well as many office workers — climbed by 4.5 percent over the year to $36.23 per hour. The increase topped the gain in overall private sector pay for production workers, which rose 4.1 percent over 12 months to $30.48 per hour.
That difference in hourly pay meant that construction workers earned a wage “premium” of 18.9 percent compared to the overall private sector, Simonson said.
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AGC officials said construction employment should continue to grow, especially as parts of the country rebuild from hurricane damages. But they said the industry would continue to struggle to find enough workers until federal officials boost funding for construction education and training programs. They continued to urge the federal government to expand the number of visas available to skilled people willing to work in needed construction jobs.
“Hurricane season will end, but labor shortages aren’t going to go away just because we turned a page on the calendar,” said Jeffrey D. Shoaf, AGC’s Chief Executive Officer.
