Construction hiring cooled in February as contractors tapped the brakes on adding staff. Industry payrolls slipped by 11,000 jobs even as pay for frontline craft workers kept climbing, a sign that rising materials costs and uneven demand are making firms think twice about how many people they bring on.
An analysis by the Associated General Contractors of America, using government payroll figures from the Bureau of Labor Statistics, found that construction employment totaled 8,309,000 in February, a loss of 11,000 jobs from January but still a gain of 42,000 compared with a year earlier. The association reported that average hourly earnings for production and nonsupervisory construction workers rose to $38.52 in February, up about 5.1% year over year. Despite the monthly dip, AGC pointed out that construction job growth has outpaced the broader economy over the past year.
Contractors Cite Materials And Demand Worries
Macrina Wilkins, the AGC’s director of market insights, cautioned that “Contractors may be more reluctant to add workers amid uncertainty about construction materials and demand.” Association officials added that clearer signals on federal funding, including passage of a new surface transportation bill, would help firms decide whether and when to resume hiring.
Where The Losses Show Up
Industry reporting based on BLS tables shows that most of the pullback hit residential specialty contractors, which shed roughly 9,500 positions and left residential construction down about 7,100 for the month, while heavy and civil engineering lost about 6,500 jobs and some nonresidential building contractors added payrolls, according to ENR. The broader government report also showed the U.S. economy lost 92,000 jobs in February and the unemployment rate ticked up to 4.4%, a backdrop that has companies across sectors more cautious about hiring, per AP.
What To Watch Next
Contractors say they are closely watching raw-material price moves, backlog indicators and local permit pipelines for any hint that the market is stabilizing. Industry groups have urged lawmakers to clarify near-term infrastructure funding to help restore confidence in public projects, concerns that have been highlighted in local coverage by KJZZ. If material costs ease and demand signals improve, firms expect to restart hiring, although they plan to do it cautiously in the months ahead.
