With the Labor Department’s Bureau of Labor Statistics describing the overall increase of 12,000 jobs in the US economy in October as “essentially unchanged” from the previous month, the increase estimated 8,000 jobs in the construction sector highlighted.
For example, among goods-producing industries, the increase in construction jobs in October was the largest; by comparison, the manufacturing sector lost 46,000 positions last month.
Considering the potential impact of two recent hurricanes, the October BLS report cautiously noted 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 at Associated Builders and Contractors, noted, however, in a press release that “October’s employment report was severely distorted by Hurricanes Helene and Milton.”
“Over the past year, the construction sector has added jobs at exactly twice the rate of the overall economy, and growth has been even faster in the non-residential segment,” Basu added.
Ken Simonson, chief economist at the Associated General Contractors of America, responded in kind to the report, noting in a statement that “construction job gains came despite hurricanes in the Southeast likely they 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 moving,” Simonson said.
According to the BLS, construction contractors added a total of 1,600 jobs in October, with 1,300 of those positions coming from residential construction firms and just 300 positions from nonresidential construction contractors.
Specialty trade contractors again posted the largest monthly job gain, with an estimated increase of 7,700 positions. However, residential specialty construction firms saw a decline of 6,600 positions, while non-residential specialty trade firms posted a gain of 14,300.
According to the BLS, employment at heavy construction and civil engineering firms declined by an estimated 1,100 positions.
Looking ahead to 2025, Basu with ABC sees reasons for optimism, at least to start the year.
“Over the past year, the construction sector has added jobs at exactly twice the pace of the overall economy, and growth has been even faster in the non-residential segment,” he said. “With online contractors expecting their staffing levels to increase over the next two quarters, according to the ABC’s construction confidence index, it looks likely that industry payrolls will continue to expand for at least the first months of 2025”.
