Construction recorded strong employment results in August, as the industry added 34,000 positions in the month, including upturns in all industry segments, the Bureau of Labor Statistics has reported.
The latest BLS monthly jobs report, released on Sept. 6, shows that nonresidential specialty trade contractors led the way among construction segments, adding 14,000 positions. Heavy and civil engineering construction also did well, with an increase of 13,500.
The smallest gain came in nonresidential building construction and residential specialty trade contractors, each of which expanded by 800 jobs for the month.
The gain of 34,000 also marked a boost from the July increase of 13,000.
Since last August, total construction employment has recorded an increase of 228,000, or 2.8%, through August.
BLS jobs numbers for August and July are preliminary; It is not uncommon to see up or down adjustments in succeeding months before the figures become final.
ABC, AGC Economists weigh in
Ken Simonson, AGC chief economist, said in a statement, "Construction job growth was the strongest in five months in August." He added, “But the record-low unemployment rate for jobseekers with construction experience shows how much difficulty contractors face in finding qualified workers.”
Construction’s unemployment rate declined to 3.2% in August, from 3.9% for July. It was down from the year-earlier level, which also was 3.9%. AGC said that the 3.2% figure was the lowest August rate in the history of the data series.
The bureau's jobs numbers are seasonally adjusted but its unemployment rates are not.
Construction’s unemployment rate declined to 3.2% in August, from 3.9% for July. It also was down from the year-earlier level, which was 3.9%, too. Simonson said that the low level of the rate is a sign of steady demand for construction.
Anirban Basu, Associated Builders and Contractors chief economist, said in a statement, “August’s employment report is perfectly consistent with the notion of a soft landing.”
He added, “Unemployment fell both economy-wide and in the nation’s construction sector.”
Basu also said that "Federal Reserve officials continue to indicate that they are ready to reduce interest rates, which is expected within the next two weeks.” The Fed is next scheduled to meet on Sept. 19 and 20.
Nevertheless, Basu added that “the level of concern has been rising among contractors.” He noted, "Many projects have been postponed recently" as borrowing costs remain high and lending conditions have tightened.
Overall, the economy added 142,000 in August, a number lower than had been forecast, according to published reports.
