US construction adds 15,000 jobs in June as wages rise

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Total seasonally adjusted construction employment reached 8.32 million, up 1.5% over the past 12 months, outpacing the 1.1% growth rate for total non-farm payrolls.

AGC said rising wages and persistent labour shortages were prompting firms to retain staff and hire when possible, even as market uncertainty tied to tariffs, taxes and labour policy continues.

“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,” said Macrina Wilkins, senior research analyst at AGC.

Average hourly earnings for production and nonsupervisory employees in construction rose 4.6% over the year to $37.20, exceeding the 3.9% annual increase for the private sector overall. The unemployment rate among workers with recent construction experience fell to 3.4%, near a historic low and well below the national non-farm rate of 4.4%.

Nonresidential construction added 9,200 jobs in June, with nonresidential specialty trade contractors gaining 12,400 positions. These were partially offset by losses of 2,800 in heavy and civil engineering construction and 400 in nonresidential building construction. Residential construction gained 5,500 jobs, driven by a 6,000-job increase among specialty trade contractors, even as homebuilders shed 500 positions.

Separate data released earlier this week by the Bureau of Labor Statistics showed that there were 273,000 construction job openings at the end of May, down 33% from the year before. Hires declined 3.9% year-on-year, but the layoff rate remained low.

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