A Tight Labor Construction Market Continues

What happened: Highway and bridge contractors added 19,300 more workers to the payroll in April 2023 compared to April 2022, according to the latest employment data from the U.S. Bureau of Labor Statistics.

• Most of the new positions – eight out of 10 – were on jobsites.
• The six percent increase in April employment outpaced job growth in the broader economy (+2.7%), general construction (+2.6%), manufacturing (+1.7%), transportation and warehousing (+1.7%), and retail trade (+0.3%).
• Contractors increased average hourly wages by five percent, which was in line with wage gains in the broader economy (+5.1%) and other major industries.

Why it matters: Industry employment is one indicator of real growth in transportation construction activity. As more projects get underway, contractors need more workers in the office and on jobsites. Employment is expected to ramp up over the summer construction season.

Dive deeper: Despite the robust increase in April employment, there are signs that contractors need to hire more workers:

• Working Longer Hours: The average worker is on the jobsite for 43.7 hours a week, up from 41.6 hours in April 2022.
• More Jobs Available: The number of unfilled job openings in the construction industry was at one of its highest levels in April at 438,000, indicating there are more jobs than workers.
• Low Unemployment: Construction unemployment remains very low at 3.5 percent, meaning most workers looking for a construction job have found one.