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Delayed September Jobs Report Reveals 19K Construction Job Surge
The construction industry boosted hiring by 17,000 positions in May, with nonresidential contractors leading the way with an overall net gain of 15,700 positions, according to the Bureau of Labor Statistics.
The U.S. Bureau of Labor Statistics' first monthly jobs report since Sept. 5 delivered good news for the U.S. construction industry, reporting that contractors added an estimated 19,000 jobs—a considerable shift compared to the decline of 7,000 positions that the agency reported for the month of August.
Overall, BLS reported that the U.S. economy, as a whole, increased total non-farm payroll employment by 119,000 workers during September.
The construction sector showed across-the-board gains, with building contractors adding an estimated 4,200 jobs, heavy and civil firms boosting employment by 4,900 positions and specialty contractors adding an estimated 10,300 workers.
That overall gain by specialty contractors was entirely in the nonresidential segment, which added 11,100 jobs during the month. At the same time, BLS reported that positions in residential specialty trades firms declined by 800.
The split between residential and non-residential hiring was reversed for building contractors. Firms in the the former group did most of the hiring in September, adding an estimated 3,900 jobs, while those in the latter group filled just 300 new positions during the month.
Construction's September jobs was welcome news considering that BLS had reported declines in each of the previous three months, as Associated Builders and Contractors Chief Economist Anirban Basu noted.
“Despite the rebound, the industry has added just 2,000 jobs since March,” he said. “While weakness is largely concentrated in the residential segment, with nonresidential employment growing at a modest pace over the past year, recent construction spending data suggests that activity in the nonresidential segment is beginning to contract as well."
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But Basu noted that, according to the association's Construction Confidence Index, "Contractors remain confident that hiring will pick back up over the next six months,” adding that “nearly half of ABC members expect their staffing levels to increase over the next six months."
Macrina Wilkins, Associated General Contractors of America senior research analyst, noted concerns related to declines in private-sector construction.
“The employment data are consistent with the August spending numbers that show rising demand for public construction, including a large heavy-civil component,” she said in a press release. “Those public-sector gains are being partly offset, however, by declining private sector demand for many types of construction projects.”
Jeffrey D. Shoaf, AGC CEO, commented, “Despite some significant economic uncertainties, construction firms remain optimistic enough to continue adding to their payrolls. The best way to sustain that momentum is by providing clarity about tariff levels, stabilizing materials prices and developing a more robust workforce.”
