ABC Analysis Indicates Construction Employment Growth in June
Construction industry employment increased by 23,000 in June, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Bureau of Labor Statistics. Industry employment has risen by 198,000 jobs since June 2022, an increase of 2.6 percent, to 7.947 million.
Nonresidential construction employment rose by 12,200 positions on net, with positive growth in two of the three subcategories. Heavy and civil engineering added 7,300 positions, while nonresidential building added an additional 5,400 jobs. Nonresidential specialty trade contractors lost 500 jobs on net.
The construction unemployment rate increased to 3.6 percent. Unemployment across all industries decreased from 3.7 percent in May to 3.6 percent in June.
“Theory suggests that the roughly 500-basis point increase in the federal funds rate over the past year would weigh on the demand for construction workers, yet the industry continues to add thousands of jobs each month,” said ABC chief economist Anirban Basu. “Contractors have collectively added jobs in 15 of the past 16 months, and ABC’s Construction Confidence Index suggests they will continue to increase staffing levels through the remainder of the year.”
The construction industry had 366,000 job openings on the last day of May, according to an ABC analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings increased by 19,000 last month but are down by 26,000 from the same time last year.
“The June jobs report, along with yesterday’s [July 6] JOLTS data, confirm that labor shortages will continue to provide a stiff headwind to hiring,” said Basu. “The construction unemployment rate inched up to 3.6 percent in June, but that’s still the second-lowest rate on record. Across all industries, unemployment remains near a 50-year low, and the prime age (24-54) employment-to-population ratio rose to the highest level since 2001. High interest rates and the cumulative effects of inflation will eventually catch up with the economy. For now, however, the labor market remains overheated.”
SOURCE – Associated Builders and Contractors
