One of the nation’s leading construction industry advocates is sounding alarm bells after builders shed 11,000 jobs nationwide in February. 

The decline, based on recent federal labor data, came after strong hiring in January. The Associated General Contractors of America suggests contractors are becoming more cautious about adding workers amid uncertainty about materials prices and demand for projects. 

“Contractors may be more reluctant to add workers amid uncertainty about how much they will pay for construction materials and demand for certain types of construction projects,” said Macrina Wilkins, the association’s director of market insights. “But even with the monthly drop, construction employment has grown at a faster rate during the past year than the broader economy.” 

Most of the contraction was in the residential construction market, with heavy and civil engineering construction having the second-most losses. 

However, the construction industry has remained robust compared to the rest of the economy over the past year. Over the past 12 months, the industry has added 42,000 jobs, a gain of 0.5%, outpacing the 0.1% increase in total nonfarm payroll employment. Average hourly earnings for production and nonsupervisory employees in construction – including most onsite craft workers and many office staff – rose to $38.52 in February, an increase of 5.1% over the past year.