Adding Jobs
Construction Employment Increases for September & October
by the Associated General Contractors of America
Construction employment increased in 40 states in September from a year earlier, while 24 states and the District of Columbia added construction jobs between August and September, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials said even more states would have added workers if contractors could find enough qualified applicants.
“It is great that four out of five states have added construction jobs over the past year,” said Ken Simonson, the association’s Chief Economist. “Even more states would be seeing gains if there were enough qualified workers available to fill job openings.”
Between September 2023 and September 2024, 40 states added construction jobs, while ten states and D.C. shed jobs. Texas added the most construction employees, 42,300 jobs or 5.1%; followed by Florida, 37,100 jobs, 5.9%; Ohio, 16,400 jobs, 6.9%; and Michigan, 12,600 jobs, 6.6%. Alaska had the largest percentage gain over 12 months, 21.1%, 3,700 jobs; followed by Hawaii, 11.8%, 4,500 jobs; Oklahoma, 9.4%, 7,800 jobs; and Nevada, 8.8%, 10,000 jobs.
New York lost the most construction jobs during the past 12 months, -6,900 jobs, -1.8%; followed by Oregon, -4,800 jobs, -4.1%; Maryland, -4,600 jobs, -2.9%; Pennsylvania, -2,900 jobs, -1.1%; and Maine, -900 jobs, -2.6%. The largest percentage loss was in Oregon, followed by Maryland, Maine, Vermont, -1.9%, -300 jobs; and New York.
For the month, industry employment increased in 24 states and D.C., it declined in 23 states, and was unchanged in Minnesota, Rhode Island, and Vermont. Texas added the most jobs, 8,100 jobs or 0.9%; followed by Ohio, 6,700 jobs, 2.7%; Florida, 3,600 jobs, 0.5%; and South Carolina, 2,900 jobs, 2.4%. Ohio had the largest percentage gain, followed by South Carolina, Nebraska, 1.9%, 1,200 jobs; and Alaska, 1.9%, 400 jobs.
Tennessee lost the most construction jobs from August to September, -1,600 jobs or -1.0%; followed by Louisiana, -1,500 jobs, -1.1%; Oregon, -1,500 jobs, -1.3%; and Illinois, -1,300 jobs, -0.6%. North Dakota lost the highest percentage of jobs for the month, -2.1%, -600 jobs; followed by Oregon, West Virginia, -1.2%, -400 jobs; and Louisiana.
Association officials urged Congress to increase funding for construction workforce training and education programs to help address workforce shortages that are likely holding back employment growth in the sector. The two best opportunities for Congress to boost funding are in the reauthorization of the Workforce Innovation and Opportunity Act that funds workforce training programs and the Carl D. Perkins Technical Career and Technical Education Act that funds in-school career and technical education programs.
“Enabling more people to learn about construction as a career opportunity is essential for filling the openings created by the many infrastructure, power, and manufacturing projects under way,” Jeffrey D. Shoaf, the association’s Chief Executive Officer, said. “Added funding for construction education and training will put more people into high-paying construction careers.”
Construction employment rose in 227, or 63%, of 358 metro areas between September 2023 and September 2024, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials noted that more metros would have construction employment gains if public officials provided more opportunities for individuals to acquire needed skills.
“Every month, more than 60% of metro areas record year-over-year increases in construction employment,” said Simonson. “But contractors consistently say they can’t find enough qualified workers despite paying wages that far exceed the private sector average.”
Simonson added that average hourly earnings for construction craft workers and other so-called production and nonsupervisory employees averaged $35.92 per hour in September 2024. That was more than 18% higher than the all-private average of $30.33 for production and nonsupervisory employees.
Houston-The Woodlands-Sugar Land, Texas added the most construction jobs, 16,600 jobs or 7%, between September 2023 and September 2024, followed by Northern Virginia, 8,300 jobs or 10%; Las Vegas-Henderson-Paradise, Nevada, 6,700 jobs, 8%; Miami-Miami Beach-Kendall, Florida, 6,400 jobs, 11%; and Orlando-Kissimmee-Sanford, Florida, 5,400 jobs, 6%. Anchorage, Alaska recorded the largest percentage increase, 17%, 2,100 jobs; followed by Urban Honolulu, Hawaii, 16%, 4,400 jobs; Kahului-Wailuku-Lahaina, Hawaii, 15%, 700 jobs; and 13% gains in Fairbanks, Alaska, 400 jobs; Detroit-Dearborn-Livonia, Michigan, 3,500 jobs; and Logan, Utah-Idaho, 500 jobs.
Construction employment declined over the year in 63 metro areas and was unchanged in 68 areas. The largest job loss occurred in New York City, New York, -8,800 jobs, -6%; followed by Portland-Vancouver-Hillsboro, Oregon and Washington, -4,000 jobs, -5%; San Jose-Sunnyvale-Santa Clara, California, -2,800 jobs, -5%; and Orange-Rockland-Westchester, New York, -2,600 jobs, -5%. The largest percentage decrease occurred in Bloomington, Illinois, -13%, -500 jobs; followed by Duluth, Minnesota, and Wisconsin, -8%, -800 jobs; Grants Pass, Oregon, -8%, -100 jobs; and Calvert-Charles-Prince George’s, Maryland, -7%, -2,200 jobs.
Construction sector employment rose by 8,000 jobs in October following a small increase in spending in September as the industry hiked hourly wages at a faster rate than other industries, according to an analysis of new government data the Associated General Contractors of America released. Association officials said employment gains for the month were likely impacted by hurricanes hitting fast growing regions and the ongoing impacts of construction labor shortages.
“The job gains in construction occurred even though hurricanes in the Southeast probably dragged down hiring in previously fast-growing states,” said Simonson. “Contractors are hiring and raising hourly pay at above-average rates in an effort to keep projects on track.”
Construction employment in October totaled 8,310,000, seasonally adjusted, an increase of 8,000 from September. The sector has added 223,000 jobs or 2.8% during the past 12 months, double the 1.4% increase for total nonfarm employment. Over the past 12 months, nonresidential contractors added 178,400 employees, 3.7%, while residential construction firms added 44,500 workers, 1.3%.
A separate government report today showed construction spending totaled $2.15 trillion at a seasonally adjusted annual rate in September. That was an increase of 0.1% from the August rate and 4.6% from September 2023.
Spending rose for data centers and most infrastructure segments, Simonson noted. Data center construction increased 0.6% for the month and 48% over 12 months. Highway and street construction climbed 0.4% and 1.5%, respectively, and investment in transportation projects such as airports and rail rose 0.8% and 7.2%, respectively. But spending on multifamily housing and most private nonresidential segments other than data centers declined in September, Simonson added.
Average hourly earnings for production and nonsupervisory employees in construction, covering most onsite craft workers as well as many office workers, climbed by 4.5% over the year to $36.23 per hour. The increase topped the gain in overall private sector pay for production workers, which rose 4.1% over 12 months to $30.48 per hour. That difference in hourly pay meant that construction workers earned a wage premium of 18.9% compared to the overall private sector.
Association officials urged public officials to do more to enable students and workers to learn about the high pay and career advancement opportunities in construction. They noted that the federal government currently spends four times more on college education than on career and technical programs.
“The mismatch in funding means that good-paying construction jobs go unfilled while too many college graduates are saddled with high debt and limited career prospects,” said Shoaf. “With better funding and publicity to open up opportunities in construction, public officials can ensure that projects stay on schedule and more metro areas will enjoy employment gains.”
Association officials said construction employment should continue to grow, especially as parts of the country rebuild from hurricane damages. But they said the industry would continue to struggle to find enough workers until federal officials boost funding for construction education and training programs. They continued to urge Congress and the administration to expand the number of visas available to skilled people willing to work in needed construction jobs.
