The construction industry added 60,000 jobs in February and recorded its fastest rate of wage growth in 40 years in an effort to accelerate residential projects and add more affordable housing to a supercharged market, Insider reports. Average hourly earnings were up 6% year-over-year in February and are rising at the fastest pace since 1982, offering a glimmer of optimism following years of labor shortages and supply chain disruptions.
Though housing affordability remains at a historic low amid heightened buyer demand, a stronger labor market could create an influx of new inventory and ease record price gains.
"Attracting skilled labor will remain a key objective for construction firms in the coming quarters and will become more challenging as the labor market strengthens and the unemployment rate declines," NAHB researchers wrote.
If the homebuilding sector welcomes more workers, it could relieve the housing market of affordability woes. This is because as more homes are introduced to the market, homebuyers will have to compete less for available inventory. As competition eases, home prices are likely to moderate and eventually fall.
Advertisement
Related Stories
Construction
28 States Report Construction Job Growth in April
Michigan saw the highest growth, with 4,200 construction jobs added month-over-month
Women in Construction
Commerce Department Sets Goal of Getting 1M More Women to Join Construction Industry
A new voluntary pledge aims to encourage more organizations to support women in construction
Education + Training
Proof That Career and Technical Education Programs Are Gaining Popularity
In keeping with a wider national trend, data show an 18% increase in Colorado high schoolers participating in career and technical education programs