While Overall Jobs Gains Stalled in October, Construction Posted Fifth-Straight Monthly Increase
While the U.S. economy as a whole added an estimated 12,000 jobs, construction added 8,000 overall, according to the Bureau of Labor Statistics.
Illustration by Scott Hilling/ENR, original elements by Getty Images
With the Dept. of Labor's Bureau of Labor Statistics describing the U.S. economy's overall jobs gain of 12,000 during October as being "essentially unchanged" from the month prior, the construction industry's increase of an estimated 8,000 jobs nevertheless stood out.
For instance, among goods-producing industries, construction's October jobs increase was the biggest; by comparison, the manufacturing sector lost 46,000 positions in the past month.
Noting the possible impact of two recent hurricanes, the BLS report for October noted cautiously that "it is likely that payroll employment estimates in some industries were affected by the hurricanes; however, it is not possible to quantify the net effect."
Anirban Basu, chief economist with the Associated Builders and Contractors, nevertheless noted in a press release that “October’s employment report was severely distorted by Hurricanes Helene and Milton." Basu added that this latest report marked construction's fifth-straight month of adding jobs.
“Over the past year, the construction sector has added jobs at exactly twice the rate of the broader economy, and growth has been even faster in the nonresidential segment," Basu added.
Ken Simonson, chief economist with Associated General Contractors of America, responded similarly to the report, noting in a statement that “the job gains in construction occurred even though hurricanes in the Southeast probably dragged down hiring in previously fast-growing states.
“Contractors are hiring and raising hourly pay at above-average rates in an effort to keep projects on track," Simonson added.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
According to BLS, building contractors added 1,600 jobs overall in October, with 1,300 of those positions coming from residential construction firms, and just 300 positions from nonresidential building contractors.
Specialty trade contractors again posted the largest monthly jobs gain, with an estimated increase of 7,700 positions. However, residential specialty construction firms saw a decline of 6,600 positions, while nonresidential specialty trade firms posted a gain of 14,300.
Heavy and civil engineering construction firms' employment decreased by an estimated 1,100 positions, according to BLS.
Looking forward into 2025, Basu with ABC sees reason for optimism, at least to begin the year.
“Over the past year, the construction sector has added jobs at exactly twice the rate of the broader economy, and growth has been even faster in the nonresidential segment," he said. "With contractors on net expecting their staffing levels to increase over the next two quarters, according to ABC’s Construction Confidence Index, it appears likely that industry payrolls will continue to expand through at least the early months of 2025.”
