Construction Employment Drops in January Despite Rising Wages

Construction employment dipped by 5,000 jobs between December and January even though hourly pay rose at a record pace in the past year, according to an analysis of government data by the Associated General Contractors of America. Association officials said future job gains are at risk from several factors that are slowing projects, as detailed in the Construction Inflation Alert that will post on February 7.

“Contractors are struggling to fill positions as potential workers opt out of the labor market or choose other industries,” said Ken Simonson, the association’s chief economist. “In addition, soaring materials costs and unpredictable delivery times are delaying projects and holding back employment gains.”