As the Housing Market Weakens, Residential Wage Growth Is Slowing
Average hourly earnings for residential building workers are slowing as the housing market enters into correction mode
April 11, 2023
Image: pogonici / stock.adobe.com
Average hourly earnings for residential building workers are rising, but at a slower pace as hiring cools in a weakening economy. Average hourly earnings (AHE) in the residential building sector were $29.5 in February 2023, up 3% from $28.67 a year ago but well below the peak 8% growth rate reached in October 2021, the National Association of Home Builders' Eye on Housing reports. The construction labor market is entering a cooling period as the housing market weakens, and that slowdown could continue to affect wage growth over the coming months.
Wage growth has retreated below or close to 3%, from the highest rate of 2021. Labor market data indicate that business hiring is softening as the economy shows signs of weakening.
According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $29.5 in February 2023, increasing 3% from $28.67 a year ago. This was 14.4% higher than the manufacturing’s average hourly earnings of $25.78, 9.2% higher than transportation and warehousing’s, and 12.0% lower than mining and logging’s.
