The construction industry desperately needs skilled workers, and the recent explosive wage growth for residential construction workers proves it. As labor shortages continue to plague homebuilders, construction worker wages are growing at almost double the pace of wages for all workers.
Historically, residential construction wages have always been slightly higher than wages overall. In the past year, however, intense demand for more housing supply has pressured homebuilders to pick up the pace and hire more hands.
- Residential construction worker wages are growing at 5% year-over-year, almost double the national average of 2.9%
- The average residential construction wage was about 13.7% higher than the average private-sector wage in March
- Residential construction wage growth has doubled since April 2017
Wages have skyrocketed for construction workers since the start of last year, far outpacing the steady wage growth for all workers over the same period, as clear a signal as any of the depth of labor shortages home builders face as they struggle to ramp up building as their costs keep rising.
When demand for certain kinds of workers rises, wages for those workers most in demand also tend to rise. And clearly, the demand for skilled construction labor is incredibly high these days.
Wages for all private-sector workers have been steadily increasing since the start of last year, rising between 2.6 percent and 2.9 percent year-over-year, according to data from the U.S. Bureau of Labor Statistics.
Historically, average wages in the residential construction industry have been slightly higher than wages overall. But as construction activity plummeted during the recession, residential construction wages softened and converged toward overall wages, dropping to near parity by late 2011. Since then, though, the gap has widened considerably. As of March, the average U.S. residential construction wage nationwide was about 13.7 percent above the average private-sector wage – a gap on par with late-2006 levels.
View the original article at Zillow Research