Construction Employment Increases by 10,000 Jobs in November With Moderate Gains in Both Residential and Nonresidential Sectors
Contractors Continue to Hire Workers as Association Urges Incoming Trump Administration to Accelerate Federal Reviews so Construction Can Start on Infrastructure and Other Construction Projects
Construction sector employment rose by 10,000 jobs in November with moderate increases in both residential and nonresidential jobs, according to an analysis of new government data the Associated General Contractors of America released today. Association officials noted that contractors continue to hire amid some softening in demand, a sign they expect demand to rebound again in the near future.
“Job gains in both homebuilding and nonresidential building construction have slowed over the past year,” said Ken Simonson, the association’s chief economist. “But contractors have been hanging onto workers, a sign that they expect work to pick up soon.”
Construction employment in November totaled 8,313,000, seasonally adjusted, an increase of 10,000 from October. Headcount climbed by 211,000 jobs or 2.6 percent during the past 12 months, nearly double the 1.4 percent gain in total nonfarm employment. Meanwhile, the average hourly wage for production and nonsupervisory employees in construction rose to $36.22, topping the private-sector average by 18.5 percent.
Over the past 12 months, employment at nonresidential contractors increased by 3.3 percent or 158,900, compared to a gain of 3.9 percent (179,800 jobs) in the previous 12 months. Residential construction employment rose by 1.6 percent (52,400 jobs) from November 2023 to last month, compared to an increase of 1.9 percent (61,900 jobs) in the previous 12 months.
Simonson noted that a separate government report this week showed that construction industry layoffs in October fell to 97,000, the lowest monthly total in the 25-year history of the series. He said this suggests contractors expect to need more workers in the near future despite the modest job growth in November.
Employment trends varied among construction segments. Nonresidential building contractors reduced headcount for the third month in a row in November, by 1,700. Employment at heavy and civil engineering construction firms—companies building infrastructure and power projects—rose by 1,500. Nonresidential specialty trade contractors added 7,000 employees. Homebuilders and other residential building contractors added 1,400 employees and employment at residential specialty contractors climbed by 1,700 jobs.
Association officials said contractors expect a bump in demand amid promises of regulatory relief from the incoming Trump administration. Those officials urged the President-elect to accelerate federal reviews on many pending infrastructure projects so contractors can start work. They noted that Congress has already passed measures to speed reviews, but the current administration has failed to act on them.
“Contractors are expecting less red tape and more construction activity with the new administration,” said Jeffrey D. Shoaf, the association’s chief executive officer. “The good news is the president-elect already has the authority needed to speed reviews and boost construction demand and employment.”