ARLINGTON, VA. — Employment in the U.S. construction sector rose by 8,000 jobs in October following a small increase in spending in September as the industry hiked hourly wages at a faster rate than other industries, according to an analysis of new government data the Associated General Contractors of America released recently.

Association officials said employment gains for the month were likely impacted by hurricanes hitting fast-growing regions and the ongoing impacts of construction labour shortages.

“The job gains in construction occurred even though hurricanes in the southeast probably dragged down hiring in previously fast-growing states,” said Ken Simonson, the association’s chief economist, in a statement. “Contractors are hiring and raising hourly pay at above-average rates in an effort to keep projects on track.”

Construction employment in October totalled 8,310,000, seasonally adjusted. The sector has added 223,000 jobs or 2.8 per cent during the past 12 months, double the 1.4 per cent increase for total nonfarm employment. Over the past 12 months, nonresidential contractors added 178,400 employees (3.7 per cent), while residential construction firms added 44,500 workers (1.3 per cent).

A separate government report showed construction spending totalled $2.15 trillion at a seasonally adjusted annual rate in September. That was an increase of 0.1 per cent from the August rate and 4.6 per cent from September 2023.

Spending rose for data centres and most infrastructure segments, Simonson noted. Data centre construction increased 0.6 per cent for the month and 48 per cent over 12 months. Highway and street construction climbed 0.4 per cent and 1.5 per cent, respectively, and investment in transportation projects such as airports and rail rose 0.8 per cent and 7.2 per cent, respectively.

But spending on multifamily housing and most private nonresidential segments other than data centres declined in September, Simonson added.

Average hourly earnings for production and nonsupervisory employees in construction, covering most onsite craft workers as well as many office workers, climbed by 4.5 per cent over the year to $36.23 per hour. The increase topped the gain in overall private sector pay for production workers, which rose 4.1 per cent over 12 months to $30.48 per hour.