South Dakota's Quarterly Census of Employment and Wages - 2006

Construction Industry Group

Businesses within the construction industry group erect buildings and other structures, perform alterations, installation, maintenance and repairs.

Construction Industry

The construction industry’s employee numbers continued to grow in 2006 despite rising interest rates. Percentage wise, construction worker employees tied for ninth place among the 22 industries reporting changes in employee numbers for 2006. Worker levels for construction grew to 21,832, an increase of 829 workers (3.9 percent) from the previous year. Although the growth was not as large as the previous year in either percentage or absolute terms, a 3.9 percent increase for South Dakota looks good compared to other parts of the country.

Annual pay for workers in the construction industry rose 6.0 percent in 2006, an increase of $1,893 from 2005 and moving workers in this industry to a new annual average of $33,653. For 2006, the 6.0 percent increase and the $1,893 increase were the third highest among the 22 industries reporting changes. The increase maintained the twelfth place ranking in the annual pay category among the other industries.

The construction industry is made up of three subsectors: building, developing and general contracting; heavy construction; and special trade contractors.

Industries in the building, developing and general contracting subsector include establishments primarily responsible for the entire construction (i.e. new work, additions, alterations and repair) of building projects. Businesses in the heavy construction subsector group are establishments that engage in the construction of heavy engineering and industrial projects (except buildings), such as highways, power plants and pipelines. The construction work performed may include new work, reconstruction or repair. Firms in the special trade contractors subsector engage in specialized construction activities such as plumbing, painting and electrical work.

All three subsectors of construction showed increased worker levels. Special trade contractors led the way with a worker increase of 454 (3.8 percent). Although not as large of an increase as in 2005, feelings that interest rates were reasonable enough to build new homes or remodel existing structures before interest rates increase were still evident in 2006. The average number of workers employed in special trades during 2006 was 12,416, an increase of 43 employers and 454 employees. This more than doubled the number of employees in building construction, the next largest subsector of construction. Building construction showed a 70 worker increase (1.2 percent). The average number of workers employed in building construction was 5,974 workers in 2006. After showing a decline in worker numbers in heavy construction for 2005, the subsector rebounded nicely with a worker increase of 306 (9.8 percent) for 2006. Although the number of employers declined in 2006, the increase in worker numbers indicates larger heavy construction projects with more employees per employer. The average number of workers employed in heavy construction in 2006 was 3,443.

Percentage wise, annual salary increased in building construction at a greater rate than in the heavy construction and special trades. The annual salary for building construction grew by 6.8 percent, or $2,045, compared to increases in heavy construction of 6.1 or $2,391 and special trade construction of 5.0 percent or $1,542.

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If you have questions or need more information, contact Ron Meier of the Labor Market Information Center at (605) 626-2314 or e-mail him at ron.meier@state.sd.us.