New analysis from the Associated General Contractors of America confirms the construction industry’s labor shortage is forcing firms to pay higher wages to attract skilled workers, according to www.constructiondive.com.
Average hourly earnings in construction—a measure of all wages and salaries—increased 3.2% during the year to $30.73, which is 10% higher than the private-sector average of $27.90.
In addition to raising pay and benefits, many firms say they have increased investments in training as they recruit workers with little to no previous experience in construction.
Most of the construction job growth during the past year came from the nonresidential construction sector, which added 146,700 jobs. Residential contractors added 78,000 jobs during the same time period.
AGC CEO Stephen E. Sandherr says this is “one of the tightest labor markets” contractors have ever experienced. Construction employment increased by 3.2 percent during the past 12 months while the number of unemployed job seekers with construction experience decreased.
With the unemployment rate at historic lows in most of the U.S., keeping workers happy is a priority for most construction executives.
“I can’t afford to lose one person,” said Jay Badame, president and COO of AECOM’s Building Construction division, in a recent webinar. “If I do, history has shown that it costs me $250,000 to replace that person in terms of recruitment and training. I have to make sure my competitors aren’t stealing my people.”
