Nonresidential construction leads job growth with 7,600 positions added

by Christopher Brinckerhoff | 20 February 2024 6:00 am

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The construction industry added 11,000 jobs in January, according to an Associated Builders and Contractors (ABC)[2] analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment expanded by 216,000 jobs, an increase of 2.7 percent.

Nonresidential construction employment increased by 7,600 positions; two of the three subcategories grew. Nonresidential specialty trade added 13,700 positions while nonresidential building added 1,600 jobs. Heavy and civil engineering lost 7,700 jobs.

The construction unemployment rate rose to 6.9 percent in January. Unemployment across all industries remained unchanged at 3.7 percent in January.

“The construction industry added jobs for the 10^th straight month in January,” says ABC chief economist Anirban Basu. “That was hardly the biggest story from [the data] release, however, with total U.S. payroll employment increasing by a staggering 353,000 positions. That’s nearly twice the consensus forecast and represents yet another economic indicator that has surprised to the upside.

“The construction unemployment rate stood at 6.9 percent for the month, which is tied for the third lowest January rate on record,” says Basu. “As a result of labor scarcity, construction wages surged in January, increasing at the fastest rate since July 2023. With both the construction industry and the broader economy continuing to grow at a rapid pace, contractors will struggle to remain adequately staffed over the coming quarters, especially with a majority of contractors intending to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index.”

Source URL: https://www.metalconstructionnews.com/news/nonresidential/

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