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Nationally, construction employment fell in May, the industry鈥檚 formerly premium hourly earnings are diminishing, and lumber prices remain high, according to a new report by the Associated General Contractors of America.

The organization鈥檚 lead economist, Ken Simonson, recently spoke with the 91视频 about the latest industry statistics and trends such as supply chain disruptions.

鈥淭he number one and two things contractors are concerned about right now (are) cost (and) the supply chain,鈥� Simonson said. 鈥淚鈥檇 say number three, and it鈥檚 higher on some companies鈥� rankings, is getting the workers they need.鈥�

Construction employment dropped by 20,000 in May from April, according to AGC鈥檚 analysis of recent U.S. Bureau of Labor Statistics data. That is the third decline in the past four months. Overall, the employment total of May was 2.9 percent below the total of February 2020.

鈥淩esidential construction employment is now higher than it was in the pre-pandemic peak month in February 2020,鈥� Simonson said. 鈥淏ut nonresidential construction has declined from April to May and has then fallen more in percentage terms than in the overall economy.鈥�

The gap between residential and nonresidential construction employment widened. Employment for residential (residential building and specialty trade contractors) edged up by 1,900 in May. But employment for nonresidential (building, specialty trades, and heavy and civil engineering construction) shrank by 21,800 in May 鈥� 5.6 percent below the total of February 2020.

鈥淭here is a huge dichotomy in construction right now, yet all contractors are experiencing these price increases and supply-chain disruptions,鈥� Simonson said.

The Bureau of Labor Statistics also reported that average hourly earnings for construction in April were $32.59 鈥� 8 percent more than the average for the nonfarm private sector. However, that advantage has shrunk over the past two years.

Pay has not been rising as quickly for construction as for other industries, Simonson said. This could be one of the difficulties that contractors are facing when they try to hire more employees.

The construction industry as a whole still pays more than the average hourly wage for the entire economy, Simonson said, but there is nevertheless competition for workers.

In a glimmer of good news for builders, prices for multiple kinds of straight boards have been dropping. That is not the case for oriented strand boards 鈥� though 鈥減erhaps we鈥檙e near the top on those prices,鈥� Simonson said.

鈥淥n the whole, it鈥檚 still going to be a squeeze for contractors first to find enough projects, and then second to find the workers, and then third to get the materials and to be able to pay for them,鈥� he said.