Construction employment increased by 19,000 positions in September, outpacing much of the broader economy as contractors raised wages to bring workers on faster, according to an Associated General Contractors of America analysis of newly released federal data.

Association officials noted that firms continue to expand payrolls to meet robust demand for public-sector projects and data centers, offsetting slowing activity in several private construction categories.

Total construction employment reached 8.305 million in September, seasonally adjusted, growing by 38,000 jobs—or 0.5 percent—over the past year. Updated figures also revealed deeper job losses in August than initially reported, signaling a softer labor market heading into September. Most of September’s gains came from nonresidential construction, which added 16,300 positions across specialty trades, building construction, and heavy and civil engineering. Residential construction rose by 3,100 jobs, driven by strength in residential building.

Wage growth also remained solid. Average hourly earnings for production and nonsupervisory construction employees increased 4.0 percent over the year to $37.64, outpacing private-sector averages. Although the unemployment rate for workers with recent construction experience rose slightly to 3.8 percent, it remained below the overall nonfarm rate.

Despite uncertainty surrounding potential government shutdowns and future tariff levels, association leaders said contractors remain optimistic and continue expanding their workforces. They urged policymakers to resolve trade disputes, stabilize materials prices, and bolster workforce-development efforts to maintain industry momentum.