California Construction News staff writer
U.S. construction employment rose by 26,000 jobs in March, bouncing back from a February decline, according to new government data analyzed today by the Associated General Contractors of America (AGC). The gains were seen across both residential and nonresidential sectors, reflecting steady demand despite ongoing challenges in finding qualified workers.
“The increase in March more than offset the 13,000-position decline that occurred in February,” said Ken Simonson, AGC’s chief economist. “It is especially heartening to see that the gains were present among all five subsectors of the industry.”
Total construction employment reached 8,330,000, a 0.7% increase over the past 12 months, outpacing the 0.2% growth in total nonfarm payroll employment. Residential construction firms added 14,300 jobs, including 11,200 positions among residential specialty contractors and 3,100 jobs among residential building contractors. Nonresidential construction employment rose by 12,200 jobs, with 4,500 new positions for nonresidential building contractors, 3,900 jobs for nonresidential specialty trade contractors, and 3,800 jobs in heavy and civil engineering construction.
Average hourly earnings for production and nonsupervisory construction employees—including craft workers and office staff—climbed to $38.62 in March, up 5.0% year over year, and now 20.4% higher than all private-sector production and nonsupervisory workers.
“Employers are paying a premium to attract talent, and they likely would have hired even more workers if qualified applicants were available,” said Jeffrey D. Shoaf, AGC’s chief executive officer. He called on Congress and the administration to boost funding for construction training programs and expand visa opportunities for qualified workers to fill short-term labor gaps.
The February slowdown, when construction employment fell by 11,000 jobs, had prompted concerns over contractor caution amid materials price volatility and uncertain project demand. Association officials noted that strong March hiring underscores the industry’s resilience, but the ongoing wage premium signals the sector’s struggle to fill positions.
“Construction employment may fluctuate month to month, but over the past year, the industry continues to grow faster than the broader economy,” said Macrina Wilkins, AGC’s director of market insights. “High pay reflects the value of skilled workers and the challenge firms face in attracting talent.”
