Construction Firms Add 15,000 Jobs In June

Arlington, VA – Construction sector employment increased by 15,000 positions in June as rising wages enabled the industry to add workers more rapidly than other sectors, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that construction firms remain eager to add workers despite uncertainty about tariffs, taxes and labor policies.

“Today’s construction employment numbers show firms are eager to find and hire workers even amid broader market uncertainty,” said Macrina Wilkins, senior research analyst for the Associated General Contractors of America. “Hiring is holding up better than expected, especially with upward revisions to prior months’ data, as persistent labor shortages prompt firms to hire when they can.”

Construction employment in June totaled 8,324,000, seasonally adjusted, an increase of 15,000 from May. Headcount rose by 121,000 jobs or 1.5 percent during the past 12 months, topping the 1.1 percent growth rate in total nonfarm payroll employment.

Nonresidential construction firms added 9,200 jobs in June, marking continued growth across much of the sector. Employment rose by 12,400 among nonresidential specialty trade contractors. However, those gains were partially offset by job losses of 400 in nonresidential building construction and 2,800 in heavy and civil engineering construction. Meanwhile, residential construction employment increased by 5,500 jobs, driven by a gain of 6,000 among residential specialty trade contractors, even as homebuilders and other residential building construction firms shed 500 positions.

Average hourly earnings for production and nonsupervisory employees in construction—including most onsite craft workers and many office staff—increased 4.6 percent over the year to $37.20. That gain exceeded the 3.9 percent rise in pay for such workers in the overall private sector.

The unemployment rate among workers with recent construction experience fell to 3.4 percent in June, near a historic low and well below the overall nonfarm rate of 4.4 percent. A separate BLS report released earlier this week showed there were 273,000 job openings in construction at the end of May, a decline of 33 percent from a year earlier. The number of hires also dipped by 3.9 percent year-over-year, while the layoff rate remained relatively low. Taken together with the low unemployment rate, the data suggest contractors are retaining existing workers and would have added more if qualified candidates had been available.

Association officials noted that the tax bill being considered today in the House will, if passed, prevent a massive tax increase on construction firms and should help ease some of the uncertainty impacting the construction market. They added that the measure includes some support for construction education by making Pell Grants available for short-term credentialing programs that offer a common pathway into the industry.

“Anything that provides more certainty for the economy should help bring more private sector developers off the bench and boost demand for construction,” said Jeffrey D. Shoaf, the association’s chief executive officer.

View the construction employment data.

About The Associated General Contractors Of America

The Associated General Contractors of America (AGC) is a leading association for the construction industry. AGC represents more than 26,000 firms, including over 6,500 of America’s leading general contractors, and over 9,000 specialty-contracting firms. More than 10,500 service providers and suppliers are also associated with AGC, all through a nationwide network of chapters. To learn more, visit www.agc.org.