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Construction industry employment increased by 44,000 in January and by 142,000 in the past 12 months, according to analysis of government data by the Associated General Contractors of America. The industry unemployment rate also reached a new January low.

Total construction employment climbed to 7,593,800, the highest level since August 2007, with gains in both residential and nonresidential employment. The 1.9% growth in construction employment between January 2019 and January 2020 outpaced the 1.4% increase in total nonfarm payroll employment. Average hourly earnings in construction – a measure of all wages and salaries – increased 2.9 percent over the year to $31.19. That figure was 9.7% higher than the private-sector average of $28.44.

AGC chief economist Ken Simonson observed that both the number of unemployed workers with recent construction experience – 515,000 – and the unemployment rate for such workers – 5.4% – were the lowest ever for January in the 21-year history of those series. He said these figures are consistent with reports from contractors as part of the association’s annual outlook that experienced construction workers are hard to find.

Association officials said construction firms report they plan to continue adding jobs in 2020 amid what it expected to be strong demand for all types of commercial construction services. But they cautioned that 81% of contractors also report having a hard time finding enough qualified workers to hire.

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