For the seventh consecutive month, the U.S. construction industry posted job gains, this time recording an across-the-board overall increase of 23,000 positions during October, according to the Bureau of Labor Statistics.
Specialty trade contractors added the most jobs, with a gain of 14,200. Of that figure, residential specialty trade contractors added 10,000 positions, while nonresidential specialty trade contractors boosted employment by 4,200.
Building contractors reported overall job gains of approximately 6,300, with residential contractors adding 3,700 overall, while nonresidential building contractors reported a gain of 2,600 jobs.
Heavy and civil engineering contractors reported an increase of 1,600 jobs for the month.
Construction’s overall unemployment rate increased in October, to 4.0% from September’s 3.8% rate, but was down slightly compared to the year-ago figure of 4.1%.
Construction workers’ earnings increased during October, BLS reported, with the average hourly rate rising from $36.83 to $37, and weekly earnings increasing to $1,446.70. On a year-over-year basis, construction workers’ wages have increased by 5%. That is a concern however, according to Anirban Basu, chief economist for Associated Builders and Contractors.
“While contractors’ demand for labor remains robust, the rising cost of labor, pushed upward by worker shortages, remains a pressing issue for the industry,” said Basu.
“Average hourly earnings for construction workers increased at over twice the rate of economy-wide wages in October and have risen significantly faster over the past 12 months,” Basu continued. “With over half of contractors intending to increase their staffing levels over the next six months and fewer than 7% intending to downsize, according to ABC’s Construction Confidence Index, labor shortages should continue to push wages higher over the next few quarters.”
Ken Simonson, chief economist with Associated General Contractors of America, noted that contractors are still having trouble hiring workers, despite the increase in wages.
“Despite the fact pay for hourly craft workers in construction is rising faster than for production employees, contractors are still struggling to find enough skilled workers,” said Ken Simonson, the association’s chief economist. “Both residential and nonresidential construction employers want to hire even more workers.”
Scott Judy is Deputy Editor for Regions, and editor of ENR Southeast, one of Engineering News-Record's 10 Regional publications. His roughly 27 years as a construction journalist began with an 11-year stint covering Midwest construction projects. In 2000, Judy helped launch the publication now known as ENR Southeast. He often delves into controversial aspects of the construction industry such as bankruptcies and fatal accidents, and wishes he would never have to cover another accident but suspects that he might.
You must have JavaScript enabled to enjoy a limited number of articles over the next 30 days.
Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the ENR audience. All Sponsored Content is supplied by the advertising company. Interested in participating in our Sponsored Content section? Contact your local rep.
Digital twins have been hailed as the master solution to increasing client demands and rising costs, but as adoption increases across the industry, it’s crucial to know the risks involved with a passive approach to digital transformation. We’ll exploit the dangers of following your competitors into this trend and make the case for getting ahead of the curve.
Sponsored by:
Special Ad Section
BRIDGES TODAY III
View all Special Ad Sections
Archives
Copyright ©2023. All Rights Reserved BNP Media.
Design, CMS, Hosting & Web Development :: ePublishing
Recent Comments