Construction employment slipped by 3,000 jobs in December, while average hourly earnings accelerated, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that recent
construction spending numbers and their own survey of members suggest demand for
construction remains strong, suggesting that the lack of hiring may be due to a shortage of available workers.
“This report presents mixed signals about the state of the
construction industry,” said Ken Simonson, the association's chief economist. “Although a dip in employment might normally be a sign of declining demand, in this case the industry is raising wages and taking other steps to attract and retain workers.
Construction spending in November hit a 10-year high, with one-month and year-over-year increases in all major segments. Looking ahead, contractors say they expect more work in every category in 2017 than in 2016.”
Construction employment totaled 6,699,000 in December, a decrease of 3,000 from November but an increase of 102,000 or 1.5 percent from a year ago. Average hourly earnings in
construction increased 3.0 percent over the past year to $28.42 per hour. Earnings have been rising in recent months at the fastest annual rate since 2009, which Simonson said is evidence that contractors are still eager to expand their headcounts.
Residential
construction—comprising residential building and specialty trade contractors—added 9,800 jobs in December and 102,500, or 3.0 percent, compared to a year ago. Nonresidential
construction (building, specialty trades, and heavy and civil engineering
construction) employment shrank by 13,400 employees in December and was virtually flat (-400 employees, 0.0 percent) over the year.