According to data released last week by the US Bureau of Labor Statistics:
- The construction industry added 15,000 jobs on net in June. Year-over-year, industry employment has risen by 121,000 jobs, or an increase of 1.5%.
- Nonresidential construction employment increased by 9,200 positions on net, with growth in just 1 subcategory (nonresidential specialty trade).
- "June’s employment report, coupled with recent inflation data, indicate that the U.S. economy continues to demonstrate solid momentum, stable unemployment and declining inflation. Construction added jobs for a second consecutive month."
Press Release from Associated Builders and Contractors, Inc (ABC)
ABC: Construction Adds 15K Jobs in June
WASHINGTON, July 3—The construction industry added 15,000 jobs on net in June, 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 121,000 jobs, or 1.5%.
Nonresidential construction employment expanded by 9,200 positions on net, with growth registered in just 1 of 3 major subcategories. Nonresidential specialty trade added 12,400 jobs, while heavy and civil engineering and nonresidential building lost 2,800 and 400 jobs, respectively.
The construction unemployment rate fell to 3.4% last month. Unemployment across all industries declined from 4.2% in May to 4.1% in June.
“Virtually every economist has been waiting for indications of stagflation,” said ABC Chief Economist Anirban Basu. “The wait continues. June’s employment report, coupled with recent inflation data, indicate that the U.S. economy continues to demonstrate solid momentum, stable unemployment and declining inflation. Construction added jobs for a second consecutive month.
“While many will cheer this jobs report, some construction firm leaders may not be among that group,” said Basu. “While abating fears of recession are comforting, these data effectively slammed the door shut on a July Federal Reserve interest rate cut. A growing fraction of contractors is experiencing weakness in backlog as projects are postponed in an uncertain economic environment coupled with stubbornly elevated borrowing costs.
“At the same time, construction materials prices have begun to edge higher, in part because of substantial tariffs on steel, aluminum, Canada, Mexico and China,” said Basu. “All things equal, that will drive up construction delivery costs, render more projects uneconomical and diminish contractor margins. Shifting immigration policy stands to reinforce these dynamics. Close attention should be paid to the profit margins component of ABC’s Construction Confidence Index in the coming months, which should reflect how these higher costs are affecting contractor operations.”
Press Release from Associated General Contractors of America (AGC)
Nonresidential Sector Continues Steady Employment Gains Even as Residential and Heavy Civil Construction Falls; As the Construction Unemployment Rate Falls to Near Historic Low of 3.4 Percent
Construction sector employment increased by 15,000 positions in June as rising wages enabled the industry to add workers more rapidly than other sectors, according to an analysis of new government data the Associated General Contractors of America released today. Association officials noted that construction firms remain eager to add workers despite uncertainty about tariffs, taxes and labor policies.
“Today’s construction employment numbers show firms are eager to find and hire workers even amid broader market uncertainty,” said Macrina Wilkins, senior research analyst for the Associated General Contractors of America. “Hiring is holding up better than expected, especially with upward revisions to prior months’ data, as persistent labor shortages prompt firms to hire when they can.”
Construction employment in June totaled 8,324,000, seasonally adjusted, an increase of 15,000 from May. Headcount rose by 121,000 jobs or 1.5 percent during the past 12 months, topping the 1.1 percent growth rate in total nonfarm payroll employment.
Nonresidential construction firms added 9,200 jobs in June, marking continued growth across much of the sector. Employment rose by 12,400 among nonresidential specialty trade contractors. However, those gains were partially offset by job losses of 400 in nonresidential building construction and 2,800 in heavy and civil engineering construction. Meanwhile, residential construction employment increased by 5,500 jobs, driven by a gain of 6,000 among residential specialty trade contractors, even as homebuilders and other residential building construction firms shed 500 positions.
Average hourly earnings for production and nonsupervisory employees in construction—including most onsite craft workers and many office staff—increased 4.6 percent over the year to $37.20. That gain exceeded the 3.9 percent rise in pay for such workers in the overall private sector.
The unemployment rate among workers with recent construction experience fell to 3.4 percent in June, near a historic low and well below the overall nonfarm rate of 4.4 percent. A separate BLS report released earlier this week showed there were 273,000 job openings in construction at the end of May, a decline of 33 percent from a year earlier. The number of hires also dipped by 3.9 percent year-over-year, while the layoff rate remained relatively low. Taken together with the low unemployment rate, the data suggest contractors are retaining existing workers and would have added more if qualified candidates had been available.
Association officials noted that the tax bill being considered today in the House will, if passed, prevent a massive tax increase on construction firms and should help ease some of the uncertainty impacting the construction market. They added that the measure includes some support for construction education by making Pell Grants available for short-term credentialing programs that offer a common pathway into the industry.
“Anything that provides more certainty for the economy should help bring more private sector developers off the bench and boost demand for construction,” said Jeffrey D. Shoaf, the association’s chief executive officer.
