AGC Hopes Tax Reform Will Spur Wage Growth and Recruitment

Construction employment increased to its highest level in November since 2008, said the Associated General Contractors after analyzing new government data. Construction employment totaled 6,955,000 in November, a gain of 24,000 for the month and 184,000 over 12 months. The year-over-year growth rate in industry jobs was nearly twice the 1.4 percent rise in total nonfarm payroll employment, said AGC.

Skilled workers are becoming increasingly harder to find and tight margins are preventing firms from offering more pay as an incentive.  The average hourly wage for construction workers in November was $28.16, a 2.9 percent increase from a year ago. The average nonfarm private sector job rose 2.5 percent during the same period. Construction pays nearly 10 percent more than the average nonfarm private sector job in the U.S., said Ken Simonson, the association’s chief economist.