Average Construction Pay Reaches Nearly $36 an Hour
The construction sector added 25,000 jobs in July as wage gains continued to outpace increases in the broader economy, according to an analysis of new government data from the Associated General Contractors (AGC) of America. However, the biggest challenge remains finding enough workers to keep pace with demand.
“The construction industry has maintained a steady pace of employment gains even as job growth has cooled in other sectors,” said Ken Simonson, the association’s chief economist. “Both residential and nonresidential construction firms are adding workers, and the industry’s ‘wage premium’ is growing relative to other sectors.”
Construction employment in July totaled 8.26 million jobs, seasonally adjusted, which was an increase of 25,000 from June. Jobs increased by 3% during the past 12 months, nearly double the 1.6% increase for total nonfarm employment.
All types of construction firms added employees in July. Nonresidential construction firms added 16,200 employees, including 2,000 at building firms; 11,300 at specialty trade contractors; and 2,900 at heavy and civil engineering construction firms. Employment at residential firms rose by 9,100, including 1,700 at builders and 7,400 at specialty trade contractors.
Average hourly earnings for production and nonsupervisory employees in construction—covering most on-site craft workers as well as many office workers—climbed by 4.4% over the year to $35.77 per hour. In contrast, overall private sector pay for production workers rose 3.8% to $30.14. That difference in hourly pay constituted a wage “premium” of nearly 19% compared to the overall private sector.
The unemployment rate among jobseekers with construction experience was 3.9% in July, unchanged from a year earlier.
AGC pointed out that the federal government spends four times more each year on four-year degree programs than it does on training and education programs for fields like construction. The association urged public officials at all levels of government to boost funding for programs that expose workers to career opportunities in fields such as construction. AGC also called on Congress and the Biden administration to allow more people to lawfully enter the country to work in construction to provide short-term relief for workforce shortages.
“Considering that construction careers pay well and are in demand, it makes sense for public officials to do more to expose people to the profession,” said AGC CEO Jeffrey D. Shoaf. “Construction firms can’t build if they don’t have enough people to do the work.”
Construction Spending Declined Slightly in June
Construction spending slid 0.3% from May to June as declines in single-family homebuilding and major public project types outweighed selective gains in private nonresidential categories, according to an Associated General Contractors (AGC) of America analysis of a new government report.
“Although overall outlays fell for the second month in a row, there were enough bright spots to suggest construction will continue growing on balance,” said Ken Simonson, AGC’s chief economist. “In particular, data centers, manufacturing and several infrastructure segments are expanding.”
Construction spending, not adjusted for inflation, totaled $2.148 trillion at a seasonally adjusted annual rate in June. That figure is 0.3% below the May rate, but 6.2% above the June 2023 level.
Private nonresidential and residential spending both fell in June but rose year-over-year. Nonresidential construction slipped 0.1% for the month but rose 4.2% from June 2023. The largest private segment, manufacturing construction, climbed 0.1% and 19.1%, respectively. There was a 0.8% decline in commercial construction and a 0.6% decline in power construction.
Spending on private residential construction declined 0.3% for the month but grew 7.3% over 12 months. Single-family construction fell 1.2% but rose 9.9% year-over-year. Multifamily spending inched up 0.1% in June but slumped 7.4% from June 2023.
AGC officials noted that many state and local officials remain concerned about their ability to comply with the Biden administration’s new Build America Buy America requirements. Those new rules make it difficult for projects to move forward when any components are not available domestically, which happens frequently, according to AGC.
Job Openings Plummet in June
The construction industry had 295,000 job openings on the last day of June, according to an Associated Builders and Contractors (ABC) analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. The survey defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 71,000 in June and are down by 119,000 from the same time last year.
“Construction industry job openings plunged to the lowest level since March 2023,” said ABC Chief Economist Anirban Basu. “This sharp decline is at least partially due to cyclical factors and slowing activity in the residential sector. More new housing units were completed in June than in any month since January 2007, and high interest rates have weighed on homebuilders’ backlogs.
“Nonresidential construction retains momentum due to strength in certain segments like manufacturing and infrastructure, and that should keep the demand for labor elevated,” Basu continued. A majority of contractors intend to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index.
Few Women Enrolled in Construction Apprenticeships
While apprenticeships have grown in the past decade, women remain underrepresented, leaving them off a key path to in-demand jobs, according to a 2024 report from the Institute for Women’s Policy Research.
In 2023, across all industries, there were 108,140 women apprentices—more than three times as many as in 2014 (32,766). The share of women apprentices increased from 9.2% to 14.4% among all 638,978 registered apprentices. The number of apprentices increased for women of all racial and ethnic groups.
However, the number of women in apprenticeships in the construction industry is low compared to other fields: just 4.5% of apprentices in construction compared to 85% in the health and social services industry. In fact, the report found that the share of women in higher-paying construction apprenticeships actually decreased from 14.3% in 2016 to 10.3% in 2023.
Nearly 8 in 10 (78.5%) of over 6,700 registered construction apprenticeship programs had no female apprentices. Where women did participate, a small fraction reported they were the only woman in the program.
The good news is that at least 492 programs had at least 10% women, accounting for 30% of all women construction apprentices. “These diverse programs, while only a minority, are having a significant impact on the overall number of women in construction,” the report stated. “They point to the need for technical assistance and oversight to ensure that other programs make similar progress.”
The report found that union-sponsored construction programs have recruited and retained women significantly more than non-union programs. A quarter (25.3%) of union programs include no women, compared with 88.6% of non-union programs.
Construction apprenticeships tend to have more racial and ethnic diversity than other industries. But because of the low number of women in construction apprenticeships overall, that means that a woman apprentice has an extremely low chance of being in an apprenticeship program with another woman of her race or ethnicity, according to the report. A Latina apprentice has less than a 1 in 20 chance to be with another Latina, and a Black non-Hispanic woman has a less than 1 in 100 chance to work with another Black woman.
Many apprenticeship programs for women tend to exist in lower-paying fields that have been traditionally filled by women, such as in health care and education. The construction industry offers higher-paying jobs, and more apprenticeships there would help women earn better wages. “Although the number of women in building trades apprenticeships has grown, with additional funding and oversight, growth could be much more substantial,” the report stated.
Gypsum Association Releases New Code Books
The Gypsum Association (GA) published new editions of the association’s code-referenced publications GA-600-2024 Fire Resistance and Sound Control Design Manual and GA-216-2024 Application and Finishing of Gypsum Panel Products. These publications are revised and released every three years, in alignment with the building code cycle. The revisions are done by GA technical staff and members of the Building Code and Technical Committee, which is comprised of representatives from each of the association’s member companies.
The GA-600 Fire Resistance and Sound Control Design Manual is referenced by the International Building Code and the National Fire Codes. Many state and local jurisdictions in the U.S. and Canada rely on GA-600 as a source document for fire-resistant and sound-control rated designs. The 2024 edition of GA-600 contains nearly 800 systems rated for fire and sound—more than 65 of these systems are new to the manual.
While GA-600 is the association’s flagship publication, GA-216 Application and Finishing of Gypsum Panel Products is colloquially known as the “Drywall Hanger’s Bible.” GA-216-2024 provides detailed information about hanging interior gypsum panels of every type and under a variety of circumstances commonly encountered in the field. GA-216 directs readers to other GA publications when they provide greater detail or clarity on the issue.
GA partnered with The ATP Group Inc. to produce the publications. All GA technical documents, including more than 30 free publications, are available at www.gypsum.org.
White Paper Focuses on Mental Health Goals
Attendees from the 2023 Construction Working Minds Summit have developed a white paper focused on mental health and well-being in the construction industry. The report covers mental health, suicide prevention, addiction recovery and overdose prevention.
The content is based largely on input from more than 400 attendees of the 2023 Construction Working Minds Summit in Kansas City, Missouri, which was co-hosted by the Construction Industry Alliance for Suicide Prevention and United Suicide Survivors International.
According to the report, 83% of construction industry workers have experienced some form of moderate to severe mental health issue. The construction industry is ranked No. 1 in pain reliever abuse, No. 1 in marijuana use, No. 1 in heroin use, and No. 2 for heavy drinking, according to the white paper. In addition, there are more than 14,000 overdoses and 5,500 suicide deaths among construction workers a year.
“Furthermore, health equity concerns are raised, particularly among Hispanic construction workers, who face high rates of occupational injuries,” the white paper stated. “Language barriers and discriminatory practices contribute to hazardous work environments for Hispanic workers, exacerbating their vulnerability to workplace-related harm.”
The white paper traces the creation of initiatives aimed at improving construction worker well-being. It presents recommendations for those across the construction industry, as well as workplace well-being advocates, service providers, researchers and policymakers.
The white paper aims to help raise awareness about the unique mental health challenges faced by construction workers; offer evidence-based and evidence-informed approaches; facilitate the development of effective programs and initiatives to support workers’ well-being and reduce addiction, overdose and suicide; and be a tool to advocate for change and a way to prioritize action steps.
Testimonials from summit attendees are included in the document. One employee said that in their required construction safety class, “never once has mental health been mentioned.” They recommended mental health education be incorporated.
Another attendee pointed out that employees fear negative job consequences if they access mental health services. The culture needs to change, another person said: “A culture of caring usually doesn’t coincide with the construction industry. The high rates of suicide need to stop, and we need to change the culture or it will continue to impact retention and recruitment into the trades.”
The report also highlights the high rates of opioid addiction and overdose deaths in the industry. It points to studies that consistently show that construction workers have the highest rates of death from drug overdoses, especially opioids such as heroin and fentanyl.
Construction workers make up about 7% of the U.S. workforce but account for 15% of all workplace overdose deaths between 2011 and 2016, according to the paper.
Construction has high injury rates compared to other industries, and workers may experience ongoing chronic pain, such as musculoskeletal disorders. This leads to higher opioid use to combat the pain, which can lead to opioid addiction. The report states that workers in construction are more likely to receive opioids when prescribed pain medication and that those in smaller companies are prescribed opioids more frequently.
Summit participants created five top priorities:
- Cultivate a Culture of Care
- Empower Workers to Help Lead—Organizational Champions, Peer Allies and Crisis Response Teams
- Continually Evaluate, Improve and Disseminate Training and Educational Efforts
- Streamline and Distribute Accessible and Responsive Resources
- Monitor and Mitigate Psychosocial Hazards—Most Notably Hours Worked and Travel
Access the white paper at bit.ly/construction_working_minds.
OSHA Celebrates National Safe + Sound Week
The Occupational Safety and Health Administration (OSHA) hosted the annual Safe + Sound Week August 12–18. The nationwide event held each August recognizes the successes of workplace health and safety programs and offers information and ideas on how to keep America’s workers safe.
According to the U.S. Bureau of Labor Statistics, the rate of worker deaths and reported injuries in the U.S. has decreased by more than 60% in the past four decades. However, every year, more than 5,000 workers are killed on the job (a rate of 14 per day), and more than 3.6 million suffer a serious job-related injury or illness.
Safe + Sound Week aims to raise awareness about workplace safety and health programs. The annual event offers a time for employers and employees to share ideas, make positive changes and celebrate achievements.
During the week, OSHA shared several resources, including:
Safety and Health Programs Step-by-Step Guide, www.osha.gov/safety-management/step-by-step-guide
“Core Elements of a Workplace Safety and Health Program” and other resources, www.osha.gov/safeandsound/safety-and-health-programs
Challenges management and workers can take to improve their safety programs, www.osha.gov/safeandsound/activities
Biden Administration Meets with Industry Leaders
In July, the White House convened leaders from the industrial sector—including the U.S. cement, steel and aluminum industries—alongside union and climate representatives for the first-of-its-kind Concrete Innovation Summit. The leaders gathered to discuss President Biden’s goal to make U.S. manufacturing the cleanest and most competitive in the world.
The Investing in America agenda includes the largest climate investment in history. Goals include reducing emissions, accelerating commercialization of new clean technologies, and increasing customer demand for higher performance and lower emission products, while also creating good-paying union jobs and revitalizing local economies.
The summit included leaders from the largest U.S. cement and concrete manufacturers, federal and local governments, startup companies, developers, engineers, designers, contractors and others from the industrial ecosystem. The representatives shared how they are meeting the Investing in America goals, while also discussing challenges and next steps.
The White House also announced a new interagency working group to dramatically accelerate the time it takes to bring new innovative materials to market. The working group is led by the Office of Science and Technology Policy at the Department of Transportation, as well as the Department of Energy.
GMS Completes the Acquisition of Yvon Building Supply and Affiliates
GMS Inc., a leading North American specialty building products distributor, announced in July that it had successfully completed its acquisition of Yvon Building Supply Inc., together with its affiliates, Yvon Insulation Corporation, Yvon Insulation Windsor, Laminated Glass Technologies Inc., and Right Fit Foam Insulation Ltd. (collectively “Yvon”), a leading distributor of building supplies in the Ontario, Canada, market. With seven locations across Ontario, Yvon provides drywall, insulation, steel, ceilings and other complementary products and related services.
The transaction is expected to be slightly margin-accretive (increase in earnings) to the broader GMS business. Founded in 1971, GMS operates a network of over 300 distribution centers with extensive product offerings of wallboard, ceilings, steel framing and complementary products. In addition, GMS operates more than 100 tool sales, rental and service centers.
L&W Supply Opens New Arizona Location
L&W Supply has opened a new location at 2742 E 16th St., Yuma, Arizona. Matias Arreola manages the new location. Arreola has been a part of L&W Supply since 2008 and has held numerous positions, including sales coordinator, inventory controller, Class A driver and more. He has previously worked at L&W Supply locations across Las Vegas, San Diego and Phoenix.
As branch manager, Arreola will be responsible for managing daily branch operations, enhancing customer experiences, guiding associates and executing branch growth.
