Private employers added 90,000 jobs in September, according to the latest ADP employment report, with education and healthcare leading the way at 55,000 new roles. Leisure and hospitality added 22,000 positions, while manufacturing and construction contributed 17,000 and 15,000 jobs respectively.
ADP chief economist Dr. Nela Richardson said wage growth in construction is outpacing most other sectors, a trend she linked partly to worker reluctance to take on shift work common in other industries.
Even with the hiring gains, industry leaders say the skilled trades are struggling to keep pace with demand. Ed Brady, president and chief executive of the Home Builders Institute, said six figure skilled trades positions are going unfilled, and argued the industry needs to do more to educate young people about the opportunities available. He said the industry is losing more workers than it is bringing in.
Chicago Federal Reserve President Austan Goolsbee has pointed to the ongoing buildout of AI data centers as a factor pushing up construction costs, warning that the trend could contribute to broader overheating in the economy.
A separate report from the New York Fed found that construction has seen synchronized wage growth since October 2022, a pattern that sets it apart from most other industries over that stretch.