According to data released today by the US Bureau of Labor Statistics, the national construction industry added 2,000 jobs on net in November.
Key Takeaways
- The construction industry added 2,000 jobs on net in November. Year-over-year, industry employment has risen by 200,000 jobs, or an increase of 2.6%.
- Nonresidential construction employment increased by 1,400 positions on net, with growth concentrated in one subcategory (heavy and civil engineering construction).
- "U.S. employers once again added jobs at a faster pace than expected in November. While construction added only 2,000 jobs for the month, the industry has added jobs at a significantly faster pace than the broader economy over the past year. That’s especially true for the nonresidential sector..."
Press Release from Associated Builders and Contractors, Inc (ABC)
ABC: Construction Adds 2,000 Jobs in November, up 200,000 Year Over Year
WASHINGTON, Dec. 8—The construction industry added 2,000 jobs on net in November, 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 200,000 jobs, an increase of 2.6%.
Nonresidential construction employment increased by 1,400 positions on net in November, with growth concentrated in one subcategory. Heavy and civil engineering added 3,300 positions, while nonresidential building and nonresidential specialty trade lost 1,100 and 800 jobs, respectively.
The construction unemployment rate rose to 4.8% in November. Unemployment across all industries decreased from 3.9% in October to 3.7% last month.
"U.S. employers once again added jobs at a faster pace than expected in November," said ABC Chief Economist Anirban Basu. "While construction added only 2,000 jobs for the month, the industry has added jobs at a significantly faster pace than the broader economy over the past year. That’s especially true for the nonresidential sector, in which employment has increased by an impressive 3.2% over the past year. That momentum is largely attributable to megaprojects in the manufacturing sector."
"Faster hiring in the industry has coincided with worsening labor shortages, and that has led to rapid increases in labor costs," said Basu. "Average hourly earnings for construction employees increased at a faster pace than economywide earnings on both a monthly and yearly basis in November. With nearly half of contractors planning to increase their staffing levels over the six months, according to ABC’s Construction Confidence Index, wage pressures will remain firmly in place through the early parts of 2024."
Press Release from Associated General Contractors of America (AGC)
Record October Job Openings Indicate Contractors are Struggling to Attract and Retain Skilled Workers amid Tight Overall Labor Market; Association Officials Call for Investments in Construction Education
Construction sector job gains slowed in November as firms added only 2,000 jobs, but wages for hourly employees accelerated and the number of unfilled positions reached record highs in October, the Associated General Contractors of America reported in analyzing government data released today. Association officials said the new figures indicate the slowdown in hiring is likely because of workforce shortages instead of declining need for labor.
"The steep rise in pay for craft and other hourly workers, along with an earlier report of record job openings heading into November, indicate that contractors are still struggling to find enough skilled workers," said Ken Simonson, the association’s chief economist. "The slowdown in employment is a sign of how tight the job market is, not an indication that construction demand is lagging."
Average hourly earnings for production and nonsupervisory employees in construction—covering most onsite craft workers as well as many office workers—climbed by 5.9 percent over the year to $34.96 per hour. Wage growth accelerated from 5.5 percent in October. Construction firms in November provided a wage “premium” of more than 19 percent compared to the average hourly earnings for all private-sector production employees.
Construction employment in November totaled 8,033,000, seasonally adjusted, an increase of 2,000 from October. The sector has added 200,000 jobs during the past 12 months. That was a gain of 2.6 percent, which outpaced the 1.8 percent job growth in the overall economy. Residential building and specialty trade contractors added 1,000 employees in November and 53,000 (1.6 percent) over 12 months. Employment at nonresidential construction firms—nonresidential building and specialty trade contractors along with heavy and civil engineering construction firms—climbed by 1,400 positions for the month and 147,800 (3.2 percent) since November 2022.
A report on job openings that the government released on Tuesday showed there were 457,000 openings in construction at the end of October, the highest October total in the 23-year history of the series. Simonson said this was a strong sign that contractors remain eager to hire and that the dip in employment gains in November is more likely a sign of the dearth of qualified workers rather than a slowdown in demand for projects.
Association officials said labor shortages were holding back growth for the construction industry and broader economy by limiting the number of new, high-paying construction jobs being created. They urged federal, state and local policy makers to boost investments in construction education and training programs to expose more people to career opportunities in the sector. They also called on federal officials to allow more people to legally enter the country to work in the industry as short-term relief until more domestic workers are available.
"Construction workforce shortages are a problem not just for contractors, but the broader economy because they limit job growth and make it harder to build infrastructure and economic development projects" said Stephen E. Sandherr, the association’s chief executive officer. "Exposing more people to construction career opportunities will put more people to work and make it easier to build."
