Construction industry thrives with ninth consecutive month of job growth in December
by Christopher Brinckerhoff | 31 January 2024 6:00 am
[1]Image courtesy Associated Builders and Contractors (ABC)
The construction industry added 17,000 jobs in December, according to an Associated Builders and Contractors (ABC)[2] analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has grown by 197,000 jobs, an increase of 2.5 percent.
In December, nonresidential construction employment increased by 11,900 positions, with growth in two of three subcategories. Nonresidential building added 8,100 positions, while nonresidential specialty trade added 4,300 jobs. Heavy and civil engineering lost 500 jobs.
The construction unemployment rate fell to 4.4 percent in December. Unemployment across all industries remained unchanged at 3.7 percent.
“Despite strong construction industry employment growth, [the] jobs report was highly contradictory,” says Anirban Basu, chief economist at ABC. “On one hand, economy-wide payroll employment expanded faster than expected in December, and the unemployment rate remained unchanged at 3.7 percent, close to the lowest level in over a half a century. Construction employment increased for the ninth consecutive month, with the nonresidential segment adding jobs at a particularly rapid pace.
“On the other hand, the labor force shrank by 676,000 persons in December, the largest decline since early 2021,” says Basu. “Wage growth also accelerated, with average hourly earnings up 4.1 percent year over year across all industries. That’s faster than expected, and a level not consistent with a return to 2 percent inflation. Construction industry earnings have increased at an even faster rate over the past year.
“This is only one month’s data and could contain significant statistical noise,” says Basu. “That said, the combination of faster wage growth and a smaller labor force suggests that interest rates could remain higher for longer.”
- [Image]: https://www.metalconstructionnews.com/wp-content/uploads/2024/01/ABC_NonresidentialEmploymentDec23_1.jpg
- Associated Builders and Contractors (ABC): https://www.abc.org/
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