Construction Climate
Data Centers Fuel Commercial Construction Hiring Gains in April
Nonresidential construction added 19,000 jobs in April as data center and power projects continued driving demand despite broader economic uncertainty

Commercial construction continued to add jobs in April as demand for data centers, power infrastructure and institutional projects helped offset broader market uncertainty, according to new industry analyses.
The construction industry added 9,000 jobs overall in April, but nonresidential construction accounted for all the gains and more, according to analyses from the Associated Builders and Contractors and the Associated General Contractors of America.
Nonresidential construction employment increased by 19,000 positions during the month, including 12,600 jobs among specialty trade contractors and 5,600 jobs among nonresidential building contractors.
Both trade groups pointed to booming data center construction as the primary driver behind current commercial construction growth.
“Nonresidential construction employment rose at a healthy pace for the month and is up a respectable 2.0% over the past year,” said ABC Chief Economist Anirban Basu. “This strength can be traced to surging data center construction spending, which is up 34% over the past year.”
AGC officials said contractors continue paying premium wages to attract workers for large-scale technology and infrastructure projects.
“The reason many construction firms added jobs last month is because of the strong demand for nonresidential projects, particularly for data centers,” said Macrina Wilkins, AGC’s director of market insights.
Broader industry forecasts suggest the trend is likely to continue. FMI Corp.’s second-quarter 2026 North American Engineering and Construction Outlook said data centers and power projects remain among the strongest-performing nonresidential segments as artificial intelligence investments continue fueling demand for digital infrastructure.
FMI projected office construction — a category heavily influenced by data center development — will grow 6% in 2026, while power construction is expected to continue accelerating through 2028 as utilities and developers expand capacity to support growing energy demand.
At the same time, FMI warned that construction growth is becoming increasingly concentrated in a relatively small number of megaproject categories. The consulting firm’s Civil Infrastructure Construction Index fell to 50.1 in the second quarter of 2026 from 52.1 in the previous quarter, reflecting softer contractor sentiment, rising competition and continued pressure from labor and material costs.
Roofing-specific indicators also suggest commercial contractors remain relatively optimistic despite broader economic uncertainty. Roofing Contractor’s 2026 State of the Roofing Industry report found that 66% of commercial roofing contractors reported increased sales volume in 2025, while many respondents pointed to continued strength in reroofing and nonresidential replacement activity.
The report also found commercial roofing contractors continue seeing stable demand tied to warehouses, institutional buildings and large-scale nonresidential facilities, even as financing costs and labor shortages remain ongoing concerns.
Average hourly earnings for construction production and nonsupervisory employees rose to $38.73 in April, up 4.8% year over year, according to AGC.
Despite the employment gains, spending growth remained uneven across commercial construction categories.
ABC reported nonresidential construction spending declined 0.2% in March, while AGC noted manufacturing construction activity dropped 17% compared to a year earlier.
Office construction, which includes many data center projects, increased 9.1% year over year, while power construction climbed 4.6%.
AGC officials warned that local opposition to new data center developments could threaten future construction growth.
“Data center construction is one of the main reasons the construction industry continues to add jobs and boost wages faster than the overall economy,” said AGC CEO Jeffrey D. Shoaf.
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