Non-residential builders increased hiring by 18,000 positions in April

Meanwhile, builders and specialty trade contractors working in the residential sector collectively eliminated about 10,400 positions in April, with specialty firms cutting the lion’s share of that number with an estimated 8,900 job cuts.

Heavy construction and civil engineering contractors collectively reported about 800 jobs.

“Construction employment expanded modestly in April, but that was largely due to weakness in the residential sector,” Anirban Basu, chief economist at the Associated Builders and Contractors of America, said in a news release.

While noting the steady increase in employment in the non-residential construction sector over the past year, Basu said: “This strength can be attributed to increased spending on data center construction, which is up 34% over the past year. It also helps explain why ABC members’ expectations for hiring remain high, according to the ABC Construction Confidence Index, despite tepid growth in industry”.

While also noting continued demand for data center projects, Macrina Wilkins, director of market information for the Associated General Contractors of America, commented that “construction companies are paying an increasing premium to attract enough people to be able to complete data centers and other projects.”

“Data center construction is one of the main reasons the construction industry continues to add jobs and increase wages faster than the overall economy,” added Jeffrey D. Shoaf, CEO of AGC of America. “The more communities do to restrict data center construction, the more likely it is that future construction growth will slow or even decline.”