Average hourly earnings for residential building workers* rose at a slower pace in November. After reaching the highest rate (8%) of 2021 in October, the pace of wage growth has retreated and remained below 4% for the past five consecutive months. The recent slowdown in wage growth will ease inflation pressures.
According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $29.46 in November 2022, increasing 2.8% from $28.66 a year ago. This was 15.3% higher than the manufacturing’s average hourly earnings of $25.54, 10.0% higher than transportation and warehousing, and 11.6% lower than mining and logging. Average hourly earnings for residential building workers have increased significantly since the COVID-19 pandemic recession. 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 saw a decline for job openings in November as the housing market is slowing in response to tighter monetary policy.
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 in the residential building industry.
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