An analysis of May employment numbers for the construction industry found wages increasing dramatically and a large number of new hires for the season.
Associated General Contractors of America completed the analysis of recently released May numbers. Here are a few highlights:
- 36,000 workers were added to the industry in May.
- Wages went up by 6.3% from May 2021 to May 2022.
- Wages saw the sharpest increase since December 1982.
- Even more employees are wanted—there's a record number of job openings going into June.
- The unemployment rate among jobseekers with construction experience tumbled from 6.7% in May 2021 to 3.8% last month.
“It is encouraging that contractors were able to add workers in May, but they will need many more to meet the increasing demand for infrastructure and private nonresidential projects,” said Ken Simonson, the association’s chief economist. “Despite steeply rising pay for hourly workers, job openings in construction hit an all-time high at the end of April, while the industry’s low unemployment rate suggests experienced workers are scarce.”
According to AGC, average earnings in the overall private sector rose slightly faster, by 6.5%, making it hard for contractors to attract enough applicants to fill all openings.
There were 494,000 construction-industry job openings at the end of April, a jump of 141,000 or 40% from April 2021. That was the largest total for any month since that series began in 2000, Simonson added, citing government data released on Wednesday.
The unemployment rate among jobseekers with construction experience tumbled from 6.7% in May 2021 to 3.8% last month, the economist noted. The number of unemployed construction workers fell by 250,000 or 39% to 392,000, suggesting there are few experienced jobseekers left to hire.
Total construction employment moved up by 36,000 employees to 7,664,000 in May, with gains in each part of the industry. Employment in residential construction rose by 16,700 workers, including 5,000 employed by homebuilders and multifamily general contractors and 11,700 at residential specialty trade contractors. Nonresidential firms added 19,400 employees, including 2,400 at general building contractors, 5,700 at nonresidential specialty trade contractors, and 11,300 at heavy and civil engineering construction firms.
AGC says the lack of available workers is undermining construction activity. The group is urging public officials at all levels to put in place more training programs to expose high school students and adults to career opportunities in construction. They also called on Congress and the Biden Administration to allow more workers with construction skills to legally enter the country.
“There is no shortage of available, good-paying career opportunities in the construction industry,” said Stephen E. Sandherr, AGC's CEO. “Public officials should be exposing people to construction career opportunities that pay well and don’t require a college degree and the debt that all too often comes with it.”
