Nonresidential construction jobs surge 21K

by Christopher Brinckerhoff | 24 July 2024 6:00 am

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The construction industry added 27,000 jobs in June, according to an Associated Builders and Contractors (ABC) analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 235,000 jobs, an increase of 2.9 percent.

Nonresidential construction employment increased by 21,200 positions, with growth in all three subcategories. Nonresidential specialty trade contractors added the most jobs for the month, (9,200-plus jobs), followed by heavy and civil engineering (6,300-plus jobs) and nonresidential building (5,700-plus jobs).

The construction unemployment rate decreased to 3.3 percent in June. Unemployment across all industries rose from 4 percent in May to 4.1 percent in June.

“Despite indications that the broader economy is slowing, the construction industry continued to add jobs at a rapid pace in June,” says Anirban Basu, chief economist at ABC. “Contractors added another 27,000 jobs for the month, with hiring concentrated in the nonresidential segment. Nonresidential construction employment has expanded 3.8 percent over the past year, a rate of growth over twice as fast as that of the broader economy. With backlog still at healthy levels, according to ABC’s Construction Backlog Indicator[2], hiring should continue in the coming months.

“Of course, the industry would have added jobs at an even faster pace if not for ongoing labor shortages,” says Basu. “The construction unemployment rate fell to 3.3 percent in June, the second-lowest level ever recorded. This is in stark contrast to the nationwide unemployment rate which, while still low by historical standards, rose to the highest level since November 2021.”

Source URL: https://www.metalconstructionnews.com/news/nonresidential-construction-4/

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