Construction firms added 22,000 jobs in July 2026 and 82,000 over 12 months, as pay for craft workers climbed faster than for production workers overall, according to a recent analysis of government data by the Associated General Contractors of America (AGC).
However, AGC officials cautioned that politics threaten to undermine two of the strongest-performing construction sectors: public infrastructure and data center work.
“The job gains in construction last month were the most since March, as firms continue to pay a premium to hire qualified workers,” said Ken Simonson, AGC’s Chief Economist. “But any interruption in funding for highways or permitting for data centers would lead to layoffs in several parts of the industry.”
Construction employment totaled 8,343,000 in July 2026, seasonally adjusted — an increase of 22,000 from June 2026. Over the past 12 months, the industry added 82,000 jobs, an increase of 1 percent, outpacing the 0.2 percent increase in total nonfarm payroll employment.
Gains in the industry were concentrated in nonresidential construction. Nonresidential firms added 20,000 employees in July 2026 and 126,400 positions (2.6 percent) over the past year. Residential builders and subcontractors combined added 2,100 workers in July but shed 44,200 positions over 12 months.
Among nonresidential firms:
- Heavy and civil engineering construction employment increased by 400 positions for the month and 21,100 (1.8 percent) since July 2025.
- Specialty contractors, whose employees work on highway and other civil projects as well as buildings, added 15,400 positions in July 2026 and 77,500 (2.7 percent) over the year.
- Building firms added 4,200 employees in July 2026 and 27,800 (3 percent) over the year.
Average hourly earnings for production and nonsupervisory employees in construction — which covers most onsite craft workers as well as many office staff — increased to $39.24 per hour in July 2026. That figure is 21.1 percent higher than the average for all private-sector production employees. Construction pay rose by 5.2 percent over the past year, compared to a 3.2 percent gain for production workers in the overall private sector.
Graphic courtesy of AGC
