Average hourly earnings for residential building workers (defined as production and nonsupervisory workers, who account for approximately two-thirds of the total employment on residential building industry) rose at a slower pace in May, after more than a year of strong gains, the National Association of Home Builders' Eye on Housing Reports. Wage growth has retreated below or close to 3% from the peak rate of 2021.
According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $29.87 in May 2023, increasing 2% from $29.16 a year ago. This was 14.3% higher than the manufacturing’s average hourly earnings of $26.14, 8.3% higher than transportation and warehousing’s, and 12.9% lower than mining and logging’s. Average hourly earnings for residential building workers grew at a relatively slower pace in the first five months of 2023, compared to the previous two years. The year-over-year growth rate reached 8% in October 2021, the highest rate since February 2019, but this rate is now decelerating. Indeed, the construction labor market with a peak in 2022 is now entering a stop-start cooling stage as the housing market adjusts to higher interest rates.
Advertisement
Related Stories
Labor + Trade Relations
Which States Have the Highest Wages for Construction Workers?
Data show that construction workers in the Northeast and on the Pacific coast have some of the highest hourly earnings, while earnings in construction grew faster in the southern states
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Construction
Proven Ways to Improve Jobsite Productivity
Consider these solutions for reducing cycle time, hard costs, dry runs, rework, miscommunication, and overall inefficiencies on the jobsite
