Construction Employment Hit Nine-Year High in April

Arlington, VA, May 8, 2017-Construction employment increased by 5,000 jobs in April to the highest level in more than nine years amid strong demand for new construction services, according to an analysis of new government data by the Associated General Contractors of America.

Association officials cautioned, however, that a shortage of available qualified workers likely limited the number of new jobs added last month.

"Construction firms continued adding new jobs at a faster rate than the broader economy during the past year as demand for their services remains strong," said Stephen E. Sandherr, the association's chief executive officer. "But many firms would likely have added even more new workers if only they could find enough qualified people to bring on board."

Construction employment totaled 6,877,000 in April, an increase of 5,000 from the March total and an increase of 173,000 or 2.6% from a year ago. The year-over-year growth rate was almost double the 1.6% rise in total nonfarm payroll employment, Sandherr noted. The sector's unemployment rate is now 6.3%, up slightly from 6% a year ago.

Residential construction-comprising residential building and specialty trade contractors-added 900 jobs in April and is up by 109,300, or 4.2%, compared to a year ago. Nonresidential construction (building, specialty trades, and heavy and civil engineering construction) employment increased by 3,200 employees in April and 63,500 employees, or 1.5%, over 12 months. However, employment among nonresidential specialty trade contractors declined by 5,100 during the past month.

Association officials noted that average construction hourly earnings are up 2.1% compared to a year ago, and construction workers now make $28.55 per hour on average. Construction pays 9% more, per hour, than the average non-farm job in the United States, which pays $26.19 on average per hour. The number of unemployed construction workers grew, however, from 530,000 in April 2016 to 585,000 last month, as more former construction workers attempted to return to the sector.

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