Residential Building Workers See Slowing Wage Growth
The Bureau of Labor Statistics reports that average hourly earnings (AHE) for residential building workers in production and non-supervisory positions rose in August to $29.32, however, this reflects a slower wage growth than seen in 2021.
Although wages continue to rise, the annual rate of growth has slowed during the past year to 3%. The recent housing slowdown indicates employers are cautious about hiring amid a slowing economy and rising interest rates despite the high labor demand.
The rise of AHE for residential building workers was 16.8% higher than manufacturing’s AHE of $25.11, 10.8% higher than transportation and warehousing ($26.47) and 11.5% lower than mining and logging ($33.14).
Since the COVID-19 pandemic recession, AHE has risen considerably for workers. The year-over-year growth of 8% in October 2021 was the highest rate since February 2019. Due to tighter monetary policy by the Federal Reserve, the construction labor market is cooling off as economic activity slows. However, there remain 407,000 open construction jobs.
Jing Fu, NAHB’s director of forecasting and analysis, provides more information in this Eye on Housing blog post.
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