A government report shows that the construction industry added 11,000 jobs in January. It was the 10th straight month the number has gone up, despite several weather-related project delays across numerous regions.
According to the Associated General Contractors of America analysis of the data released by the U.S. Bureau of Labor Statistics, more construction contractors are boosting wages and taking steps to attract more workers as they try to keep pace with the relatively strong demand.
The construction unemployment rate rose to 6.9% in January, tied for the third-lowest January rate on record. Unemployment across all industries remained unchanged at 3.7% last month.
Job openings in construction at the end of December totaled 374,000, not seasonally adjusted, greatly exceeding the 227,000 workers hired and implying that contractors want to hire far more workers than they can find, AGC Chief Economist Ken Simonson said. In addition, spending on projects underway that month totaled $2.1 trillion at a seasonally adjusted annual rate, 0.9 percent higher than in November and 14 percent higher than a year earlier.
“Although job gains were modest last month, other evidence suggests there is still lots of demand for workers,” said Simonson. “Wages rose faster than in other sectors; job openings at the end of 2023 were at near-record levels for December, and construction spending jumped that month.”
Associated Builders and Contractors
Through 2023, average hourly earnings for most workers, including office staff, climbed by 5.3% to $35.21 per hour. In December, contractors provided a wage “premium” of nearly 19% compared to the average hourly earnings for all private-sector production employees. However, despite the high wages, construction contractors continue to face the issue of finding qualified skilled workers.
