While the construction labor market remains tight, the average hourly earnings for residential building workers continued to increase in May, according to the NAHB. However, the association says the growth rate of earnings is trending down given tightening financial conditions and increased economic uncertainty.

According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $29.18 in May 2022, increasing 5% from $27.79 a year ago. This was 17.0% higher than the manufacturing’s average hourly earnings of $24.95, 11.5% higher than transportation and warehousing’s, and 9.7% lower than mining and logging’s. Construction job openings was little changed in May with 434,000 jobs, the highest measure in the history of the data series. As skilled labor shortage persists, rising wages may be one of the effective ways to attract employees to fill empty positions.

Average hourly earnings for residential building workers have increased significantly since the COVID-19 pandemic recession. Between December 2019 and December 2021, residential building workers’ average hourly earnings increased about 12%.