According to data released Friday by the US Bureau of Labor Statistics, the national construction industry added 39,000 jobs on net in March.
Key Takeaways
- The construction industry added 39,000 jobs on net in March. Year-over-year, industry employment has risen by 270,000 jobs, or an increase of 3.4%.
- Nonresidential construction employment increased by 24,600 positions on net, with growth in all 3 subcategories.
- "Today’s release was a blockbuster jobs report and indicates that recession is not arriving anytime soon. The 39,000 jobs added by the nation’s construction segment was roughly twice the monthly growth observed over the past year."
Press Release from Associated Builders and Contractors, Inc (ABC)
Press Release from Associated Builders and Contractors: ABC: Nonresidential Construction Adds Whopping 24,600 Jobs in March
WASHINGTON, April 5—The construction industry added 39,000 jobs on net in March, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 270,000 jobs, an increase of 3.4%.
Nonresidential construction employment increased by 24,600 positions on net, with growth in all three subcategories. Nonresidential specialty trade added the most jobs, increasing by 16,300 positions. Heavy and civil engineering and nonresidential building added 6,000 and 2,300 jobs, respectively.
The construction unemployment rate fell to 5.4% in March. Unemployment across all industries declined from 3.9% in February to 3.8% last month.
"Today’s release was a blockbuster jobs report and indicates that recession is not arriving anytime soon," said ABC Chief Economist Anirban Basu. "The 39,000 jobs added by the nation’s construction segment was roughly twice the monthly growth observed over the past year. If one focuses purely on nonresidential construction, monthly job growth was nearly 80% faster than the one-year average." "Structural transformations in the economy, including replenished domestic supply chains, expanded data center demand and augmented infrastructure, are making it difficult for many project owners to wait for lower construction delivery costs," said Basu. "Despite the effects of worker shortages, still-elevated materials prices, newly emerging supply chain issues and the high cost of project financing, both privately and publicly financed segments produced substantial employment growth in March. This comports with ABC’s Construction Confidence Index, which shows that a large share of contractors intend to grow their staffing levels over the next six months."
"As always, the jobs report was not completely positive," said Basu. "Those in search of lower inflation and interest rates will not be comforted by this release. While economywide year-over-year wage growth softened to 4.1% in March, the monthly wage growth figure suggested a pace of compensation growth that will render it difficult for the Federal Reserve to substantially reduce interest rates in 2024. The notion that interest rates will remain higher for longer remains firmly in place, which means that project financing costs will likely be an ongoing issue for construction demand, especially in privately financed segments, for the foreseeable future."
Press Release from Associated General Contractors of America (AGC)
Monthly Pickup is the Largest Since January 2023, While the Industry’s 5.4 Percent Unemployment Rate Is the Lowest March Rate in Five Years; However Record Job Openings Show Firms Need More Workers
The construction industry added 39,000 jobs in March—the most since January 2023—with gains among all five types of residential and nonresidential categories, according to an analysis of new government data the Associated General Contractors of America released today. Association officials cautioned, however, that firms are still coping with significant labor shortages that are undermining broader growth in the sector.
"All types of construction firms were hiring in March," said Ken Simonson, the association’s chief economist. "But the record number of construction job openings at the end of February indicates contractors would have hired even more workers if they were available to keep pace with demand."
Construction employment in March totaled 8,211,000, seasonally adjusted, a gain of 39,000 from the upwardly revised February total. The sector has added 270,000 jobs during the past 12 months, a 3.4 percent increase. Residential builders added 5,500 employees in March, while residential specialty trade contractors added 8,900. Employment rose as well among nonresidential construction firms, by 2,300 at building construction firms, 16,300 at specialty trade contractors, and 6,000 at heavy and civil engineering construction firms.
Average hourly earnings for production and nonsupervisory employees in construction—covering most onsite craft workers as well as many office workers—climbed by 4.9 percent over the year to $35.42 per hour. Construction firms in March provided a wage “premium” of 18.9 percent compared to the average hourly earnings for all private-sector production employees.
One reason for the rapid wage gains is that the industry continues to struggle to find enough workers to hire. Simonson noted that a different federal report released earlier showed there were 414,000 job openings at the end of February, the highest number of open positions yet recorded for the month.
Association officials said those labor shortages were making it harder for firms to take on new projects and complete existing ones on schedule. They urged federal officials to narrow the substantial gap between what it invests in education and training programs for fields like construction and what it spends urging most students to go to college and work in an office environment. They also urged Congress and the Biden administration to explore ways to allow more people to lawfully enter the country who are qualified to work in construction.
"Based on funding levels and immigration policy, the federal government is discouraging American workers from pursuing construction careers while refusing to welcome those born elsewhere," said Jeffrey Shoaf, the association’s chief executive officer. "We need an all-of-the-above instead of a none-of-the-above approach when it comes to encouraging more people to pursue the many high-paying construction career opportunities that are available today."
