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Average Construction Pay Hits $35.92 an Hour, Topping Private Sector Total by 18 Percent, but Low Unemployment Rate and High Level of Job Openings Show Contractors Seek to Hire Even More Workers

Construction sector employment rose by 25,000 jobs in September as both nonresidential and residential contractors added workers at a faster clip than other industries, according to an analysis of new government data the Associated General Contractors of America released today. Association officials noted that firms continue to boost pay as they seek to add even more people to their payrolls to keep pace with demand.

“Construction job growth has remained strong,” said Ken Simonson, the association’s chief economist. “The persistently low unemployment rate for jobseekers with construction experience and the high level of job openings suggest the industry would hire even more workers if they could find enough qualified applicants.”

Construction employment in September totaled 8,303,000, seasonally adjusted, an increase of 25,000 from August. The sector has added 238,000 jobs or 3.0 percent during the past 12 months, nearly double the 1.6 percent increase for total nonfarm employment. Over the past 12 months, nonresidential contractors added 177,800 employees (3.7 percent), while residential construction firms added 60,500 (1.8 percent). The unemployment rate among workers with recent construction experience was 3.7 percent, the fourth month in a row in which the rate has been lower than for the overall economy.

A separate government report this week showed there were 370,00 job openings in construction at the end of August. That exceeded the 338,000 workers hired during the entire month, indicating the industry sought to hire more than twice as many workers as it was able to bring on board, Simonson said.

Average hourly earnings for production and nonsupervisory employees in construction—covering most onsite craft workers as well as many office workers—climbed by 4.0 percent over the year to $35.92 per hour. The increase slightly outpaced the gain in overall private sector pay for production workers, which rose 3.9 percent over 12 months to $30.33 per hour. That difference in hourly pay meant that construction workers earned a wage “premium” of more than 18 percent compared to the overall private sector.

Association officials urged Congress to boost funding for construction education and training programs in both the Workforce Innovation & Opportunity Act and in the Carl D. Perkins Career and Technical Education Act. They also urged federal officials to expand the number of work authorizations available to people willing to enter the country lawfully and work in construction.

“The jobs report would have been even stronger if construction firms could find enough qualified workers to keep pace with demand,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Federal officials can help more people enter high-paying careers by boosting exposure to, and work authorizations for, construction careers.”

View the construction employment data.