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January 10, 2025 - 4:44pm

According to data released today by the US Bureau of Labor Statistics:

Press Release from Associated Builders and Contractors, Inc (ABC)

ABC: Construction Underperforms Broader Economy in December Jobs Report

WASHINGTON, Jan. 10—The construction industry added just 8,000 jobs on net in December, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 196,000 jobs, an increase of 2.4%.

Nonresidential construction employment increased by 4,700 positions on net, with growth in all three subcategories. Nonresidential specialty trade added the most jobs, increasing by 3,900 positions. Heavy and civil engineering added 600 jobs, while nonresidential building added 200 jobs last month.

The construction unemployment rate rose to 5.2% in December. Unemployment across all industries decreased from 4.2% in November to 4.1% last month.

“The December jobs data bode well for the broader economy but poorly for the construction industry,” said ABC Chief Economist Anirban Basu. “Nationwide employment increased for the 48th consecutive month in December, and it increased rapidly. The 256,000 net new jobs were the most in any month since March, while the unemployment rate ticked down to 4.1%.

“Construction job growth, on the other hand, has clearly slowed in recent months,” said Basu. “The 15,000 jobs added during the fourth quarter of 2024 represent the fewest over any three-month period since the middle of 2021. While industrywide job growth is still significantly faster than economywide hiring over the past year, the interest rate implications of these data represent a greater concern for contractors. Bond yields surged even higher as a result of this jobs report, suggesting that the Federal Reserve may not cut interest rates during the first half of 2025. Contractors intend to increase their staffing levels in the coming months, according to ABC’s Construction Confidence Index, and it will be interesting to see if those intentions remain intact in early 2025.”


 

Press Release from Associated General Contractors of America (AGC)

Construction Sector Adds 8,000 Jobs In December As Industry Employment And Wage Gains Outpace Growth Rates For The Overall Economy In 2024

Association Survey Finds Most Contractors Expect to Increase Headcount in 2025 amid Optimism about Expanding Opportunities for Nearly All Project Types But are Worried about Workforce and Tariffs

Construction sector employment increased by 8,000 positions in December as the industry’s headcount and wages in 2024 both rose faster than in the broader economy, according to an analysis of new government data the Associated General Contractors of America released today. Association officials noted that most contractors are optimistic about demand for projects and expect to continue adding employees in 2025 according to a new survey the association released this week.

“While construction job gains have slowed lately, the industry is still adding workers at a stronger clip than the broader economy,” said Ken Simonson, the association’s chief economist. “Construction employment should grow faster in 2025, assuming contractors can find enough qualified workers to meet demand.”

Construction employment in December totaled 8,316,000, seasonally adjusted, an increase of 8,000 from November. Headcount climbed by 196,000 jobs or 2.4 percent during 2024 as a whole, well above the 1.4 percent gain in total nonfarm employment. In 2024, employment at nonresidential contractors increased by 3.0 percent or 145,300, while residential construction employment rose by 1.5 percent or 51,000 jobs.

The average hourly wage for production and nonsupervisory employees in construction rose by 4.2 percent in 2024 to $36.44 in December. The year-over-year increase exceeded the 3.8 percent gain in the overall private sector, while the industry’s average wage in December topped the private-sector average by 19.0 percent.

The 2025 Construction Hiring and Business Outlook Survey, which the association conducted with Sage and released on January 8, found that 69 percent of the 1100 responding contractors expect to add to their headcount in 2025. Further, on balance they expect opportunities to expand compared to 2024 for 15 out of 17 project types included in the survey.

The most widespread optimism focused on data center construction. Contractors were broadly upbeat as well about the prospects for water and sewer construction, power projects, transportation facilities, manufacturing plants, healthcare, and bridge and highway work. The only categories for which expectations of shrinking demand slightly outweighed rising demand were private office and retail construction.

The survey results indicate, however, that contractors remain deeply concerned about workforce issues, unnecessary permitting complexity, opaque procurement waiver processes and the potential impact of threatened tariffs on materials prices. Association officials said they are urging the incoming Trump administration to make sure any new tariffs do not impact the cost of materials needed for vital infrastructure and economic development projects. They also urged Washington officials to invest in construction education and training programs and expand lawful opportunities for people to enter the country and work in construction.

“Construction activity is the physical proxy for economic growth,” said Jeffrey D. Shoaf, the association’s chief executive officer. “If contractors don’t have the workers they need, can't work efficiently or can’t afford the materials required, construction – and as a result economic activity – will take longer and cost more than it does today.”

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