U.S. construction employers added jobs in April as nonresidential firms carried the sector through another uneven month, with pay continuing to rise for workers in the trades.
The construction industry added 9,000 jobs in April, bringing seasonally adjusted employment to 8.321 million, according to an Associated General Contractors of America analysis of federal labor data. The increase came as nonresidential hiring helped offset continued weakness in residential construction. Over the past year, construction employment rose by 50,000 jobs, a gain of 0.6 percent, while total nonfarm payroll employment increased by 0.2 percent.
The April figures landed inside a broader labor market that showed slower but still positive job creation. The U.S. Bureau of Labor Statistics reported that total nonfarm payroll employment rose by 115,000 in April, while the national unemployment rate held at 4.3 percent. Job gains were concentrated in health care, transportation and warehousing, and retail trade, while construction was described as showing little change overall in the main federal summary.
Nonresidential Work Carries April Hiring
Nonresidential construction employment increased by 19,000 positions in April. Specialty trade contractors in the nonresidential market added 12,600 jobs, while nonresidential building contractors added 5,600. Heavy and civil engineering construction added 800 positions.
That momentum was enough to offset residential declines. Residential construction employment fell by 10,400 jobs in April and was down 49,200 positions over the past year. Residential specialty trade contractors accounted for a large share of the April pullback, losing 8,900 positions, while residential building contractors shed 1,500 jobs.
The contrast points to a market where demand remains uneven. Commercial, infrastructure, and specialized facilities continue to support hiring, while housing-related construction faces pressure from affordability challenges, financing conditions, and a slower residential pipeline.
Associated Builders and Contractors also reported that nonresidential construction employment rose across all three major subcategories in April. The group said the broader construction industry added 9,000 jobs on net, while the construction unemployment rate stood at 3.8 percent.
Pay Moves Higher as Firms Compete for Crews
Average hourly earnings for production and nonsupervisory construction employees rose to $38.73 in April. That group includes many onsite craft workers, along with some office staff. AGC said the figure was 20.2 percent higher than the average for all private-sector production employees. Construction pay rose 4.8 percent over the past year, compared with 3.7 percent for production workers across the private sector.
For all construction employees, average hourly earnings reached $40.97 in April, according to Bureau of Labor Statistics data compiled by the Federal Reserve Bank of St. Louis. The figure was up from $40.93 in March and $40.53 in January.
The pay trend reflects a market where employers are still competing for skilled workers even as total industry hiring remains measured. Construction firms are not adding staff at the pace seen in stronger expansion periods, but many are still paying more to retain workers and attract qualified tradespeople for specialized projects.
The March labor report showed similar pressure. NAHB reported that construction employment rose by 26,000 jobs in March, with both residential and nonresidential segments adding workers. At the time, nonresidential construction increased by 12,200 positions, while residential construction added 14,300.
Data Centers Put Pressure on Skilled Trades
Demand for data centers has become a major force behind nonresidential hiring.
AGC noted that demand for data centers and other nonresidential projects helped drive April hiring. The association also said contractors continue to raise pay as they seek enough workers to complete complex projects.
Reuters reported that demand for workers to build data centers, transmission grids, and power plants is intensifying competition for electricians, line workers, and other construction roles. The pressure comes as a large share of experienced workers nears retirement. Around 41 percent of the current construction workforce is projected to retire by 2031, according to the National Center for Construction Education and Research, as cited by Reuters.
The labor strain is especially visible in power-related construction. Reuters reported that the U.S. power sector will need additional workers in transmission, grid connection, manufacturing, construction, and operations to support planned power capacity growth. Electricians and power line installers are expected to see demand grow faster than many other occupations between 2024 and 2034, according to BLS estimates cited by Reuters.
That demand is reshaping hiring across several regions. Reuters cited strong needs across North Carolina, South Carolina, Georgia, and Virginia, where data center and power project activity has expanded. Employers in fast-growing markets are facing shortages in specialized trades, including electricians needed for advanced facilities and energy projects.
