Average hourly earnings for residential building workers* rose at a slower pace in May, after more than a year of strong gains. Wage growth has retreated below or close to 3%, from the peak rate of 2021.
According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $29.87 in May 2023, increasing 2% from $29.16 a year ago. This was 14.3% higher than the manufacturing’s average hourly earnings of $26.14, 8.3% higher than transportation and warehousing’s, and 12.9% lower than mining and logging’s. Average hourly earnings for residential building workers grew at a relatively slower pace in the first five months of 2023, compared to the previous two years. The year-over-year growth rate reached 8% in October 2021, the highest rate since February 2019, but this rate is now decelerating. Indeed, the construction labor market with a peak in 2022 is now entering a stop-start cooling stage as the housing market adjusts to higher interest rates.
Note: * Data used in this blog relate to production and nonsupervisory workers in the residential building industry. This group accounts for approximately two-thirds of the total employment on residential building industry.
If wage growth continues to slow, it could lead to a decrease in new home construction, which could impact the availability of construction loans. That is why it’s important to have the right financial partner by your side that can make all the difference. Us at builderloans.net can help you in achieving this.