Wage Growth Is Slowing for Residential Building Workers
Average hourly earnings for residential building workers have increased steadily since the COVID-19 pandemic-induced recession, but are now rising at a much slower rate, NAHB Eye on Housing reports. Average hourly earnings (AHE) for residential building workers rose 2.8% year-over-year to $29.46 in November 2022 from $28.66 in November 2021. Though still historically high, November’s year-over-year growth rate is well below the peak annual 8% rate recorded in October 2021.
After reaching the highest rate (8%) of 2021 in October, the pace of wage growth has retreated and remained below 4% for the past five consecutive months. The recent slowdown in wage growth will ease inflation pressures.
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 saw a decline for job openings in November as the housing market is slowing in response to tighter monetary policy.