The construction industry has experienced a remarkable turnaround, with the unemployment rate reaching a new low of 3.3% in June, significantly lower than the 4.1% average unemployment rate across all industries.
This positive development highlights the industry’s resilience and the growing demand for skilled workers in the sector.
According to the United States Department of Labor (DOL), the construction industry added 27,000 new workers from May to June, with the highest growth observed in specialty trades. The sector has seen a steady increase, adding 235,000 jobs over the past 12 months, a 2.9% increase.
Ken Simonson, the chief economist at the Associated General Contractors of America (AGC), attributes this growth to construction employment strengthening in June, with all segments adding workers despite recent weakness in demand for residential and commercial buildings. He notes that “finding enough qualified workers remains a greater challenge for most firms than finding projects to work on.”
The nonresidential construction segment, comprising nonresidential building, specialty trade contractors, and heavy and civil engineering construction firms, led the charge, adding 21,200 employees in June. Meanwhile, the residential building and specialty trade contractors segment grew by 5,500 workers.
The remarkable decline in the unemployment rate among job seekers with construction experience, from 3.6% in June 2023 to 3.3% in June 2024, marks the lowest June rate in the 24-year history of the data. This trend underscores the construction industry’s ability to attract and retain talented individuals, despite the ongoing challenges posed by the labor shortage.
Moreover, the average hourly earnings for production and nonsupervisory construction employees have increased by an impressive 4.6% from June 2023 to June 2024, reaching $35.64 per hour. This wage growth reflects the industry’s efforts to remain competitive and attract the necessary workforce to meet the growing demand for construction services.
The construction industry’s resilience and strong performance in the face of recent challenges are undoubtedly positive signs for the overall economy. As the industry continues to adapt and evolve, it will play a crucial role in shaping the future of infrastructure development, commercial construction, and residential housing.
Source:AGC of America with additional information added by GlassBalkan
