Construction Starts Economy

Construction Employment Update: Nonresidential Building Pauses While Residential Rebounds

By Michael Guckes, Chief Economist 

KEY POINTS

  • Total U.S. construction employment increased by 22,000 in August, according to the Bureau of Labor Statistics.

  • Civil Construction gained roughly 4,000 to reach 1.2 million, and Nonresidential Specialty Trade Contractors added about 8,000 workers.

  • Construction production and nonsupervisory workers earned an average of $39.36 per hour in August, 4.3% more than private-sector workers overall, and worked longer hours.

Total U.S. construction employment increased by 22,000 during August according to the Bureau of Labor Statistics.

  • Nonresidential Specialty Trade Contractors added about 8,000 workers to reach 2.9 million, and Civil Construction gained roughly 4,000 to reach 1.2 million. 

  • Nonresidential Building Construction was the only major subsector to lose workers, shedding about 2,000 laborers after the segment reached an all-time high of 949,000 workers in July. Nonresidential Building (NRB) is the category covering offices, including data centers, schools, warehouses and hospitals.

  • Residential added roughly 7,000 workers to reach 924,000, and Residential Specialty Trade Contractors gained about 3,000, its first increase since March of this year. 

Construction’s average hourly wage of production and nonsupervisory workers reached $39.36 in August, 4.3% above the $37.75 average across all private-sector jobs. 

Those in construction also were able to work more hours, averaging 39.5 hours versus 34.4 hours for all private-sector counterparts. 

2026-09 -- LABOR Wkly Earnings Constr. vs. Ttl Priv (VIZ)
Combining average pay and hours, a typical construction worker could have expected to earn $1,555 a week, 19.8% more than the typical private-sector worker took home over the same period. As shown in the chart above. Image: ConstructConnect Construction Economy Snapshot

This pay variance has been trending higher since at least early-2021 when the same measures pointed to only a 12% weekly income premium for construction workers.

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Michael Guckes, Chief Economist
Michael Guckes is regularly featured as an economics thought leader in national media, including USA Today, The Wall Street Journal, and Marketplace from APM. He started in construction economics as a leading economist for the Ohio Department of Transportation. He then transitioned to manufacturing economics, where he served five years as the chief economist for Gardner Business Media. He covered all forms of manufacturing, from traditional metalworking to advanced composites fabrication. In 2022, Michael joined ConstructConnect's economics team, shifting his focus to the commercial construction market. He received his bachelor’s degree in economics and political science from Kenyon College and his MBA from the Ohio State University.
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