Wages for residential building workers continued to accelerate in September, growing by 9.9% during the month. The pace of growth followed a 10.8% gain for wages in the sector in August. According to the NAHB, the year-over-year growth rates in the past four months were “unprecedented” in the near 35-year history of the data series.
The ongoing skilled labor shortage in the construction labor market and lingering inflation impacts account for the recent acceleration in wage growth. However, the demand for construction labor remained weaker than a year ago. The number of open construction sector jobs fell from a revised 328,000 in August to a softer 288,000 in September. Nonetheless, the ongoing skilled labor shortage continues to challenge the construction sector.
According to the Bureau of Labor Statistics report, average hourly earnings for residential building workers was $33.51 per hour in September 2024, increasing 9.9% from $30.5 per hour a year ago. This was 19.2% higher than the manufacturing’s average hourly earnings of $28.12 per hour, 14.7% higher than transportation and warehousing ($29.21 per hour), and 8.1% lower than mining and logging ($36.46 per hour).
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