Construction Sector Adds Jobs Faster than Overall Economy

The construction industry has long been a barometer of economic health, and recent data from the Associated General Contractors of America (AGC) reveals a sector in robust growth. In April 2025, the construction sector added 11,000 jobs, outpacing the overall economy's job growth rate. This surge in employment is a testament to the industry's resilience and its ability to attract and retain talent despite ongoing challenges.

The AGC's analysis highlights several key trends. Construction employment in April totaled 8,316,000, an increase of 11,000 from March. Over the past 12 months, the industry has added 218,000 jobs, a 2.7% growth rate that surpasses the 1.4% growth rate in total nonfarm payroll employment. This robust job growth is driven by rising wages, which have climbed by 4.5% over the year to $36.96 per hour for production and nonsupervisory employees. This wage increase outpaces the 4% rise in pay for similar workers in the overall private sector, indicating that the construction industry is becoming an increasingly attractive option for job seekers.

However, the industry is not without its challenges. The unemployment rate among workers with recent construction experience rose to 5.6% in April, up from 5.2% a year earlier. This uptick suggests a softening in labor demand, with many firms holding onto current employees while facing growing uncertainty. Association officials have expressed concern about the potential impacts of new tariffs and other policy reversals, which could halt many projects and employment gains.



The construction industry's growth is not uniform across all sectors. Nonresidential construction firms added 8,000 workers in April, with gains of 4,900 among specialty trade contractors and 3,600 in nonresidential building construction firms. However, heavy and civil engineering construction firms saw a dip of 500 workers. Residential construction employment increased by 3,400, with residential specialty trades construction firms adding 4,100 positions, but homebuilders and other residential building construction firms shed 700 workers.

Despite these challenges, the construction industry remains optimistic. Demand for certain types of construction projects, particularly data centers, continues to expand. The industry is also working to address labor shortages and the potential impacts of new tariffs. The AGC is collaborating with the Trump administration and Congress to boost funding for construction education and training, and to find ways to allow more people to lawfully enter the country and work in the sector.

In conclusion, the construction industry's job growth in April 2025 is a positive sign of its resilience and adaptability. However, the industry must navigate ongoing challenges, including labor shortages and the potential impacts of new tariffs. By addressing these issues and continuing to invest in education and training, the construction industry can maintain its growth trajectory and contribute to the broader economic recovery.