Construction industry hiring kept pace in May, with contractors adding an estimated 17,000 jobs, according to the Bureau of Labor Statistics’ June 5 jobs report. That number was below the 18,000 hiring that the BLS had reported the previous month.
Once again, non-residential contractors led the way, adding approximately 15,700 positions over the past month. The vast majority of that number came from specialty contractors, who collectively filled about 11,400 positions in May. Meanwhile, nonresidential building contractors added roughly 1,700 workers, and civil and heavy engineering firms increased employment by 2,600 positions.
In the residential sector, building contractors lost approximately 1,700 jobs, while residential specialty trade contractors added 2,600 workers during May.
Acknowledging that contractors “remain broadly optimistic,” Associated Builders and Contractors chief economist Anarban Basu said in a press release, “The industry’s recent job growth, fueled by insatiable demand for data centers and continued growth in publicly funded construction activity, looks set to continue in the coming months.”
Noting the “surprising strength of the broader labor market,” Basu further commented: “This is a sign of broader economic resilience, although not necessarily encouraging for the construction sector,” noting that interest rate hikes “are now more likely.”
At the Associated General Contractors of America, Chief Economist Ken Simonson commented in a press release: “In contrast to modest job gains in the broader economy, non-residential construction firms continue to add workers and increase wages.
“The sector has strong demand for data centers and related energy and manufacturing projects, all of which require skilled and highly paid workers,” Simonson added.
The AGC press release also noted, “If Congress does not pass a new highway and transit bill by the end of September, construction employment levels are likely to suffer.”
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