Construction employment continued its upward trend, adding 11,000 jobs in January, the Bureau of Labor Statistics reported, with the industry posting its tenth consecutive monthly increase.
Almost all construction segments posted gains in January, led by the nonresidential specialty contractor category, which showed an increase of 13,700 positions.
The only segment that lost jobs was heavy construction and civil engineering, which eliminated 7,700 jobs.
The Associated General Contractors of America noted that the industry increases came despite widespread cold weather slowing progress on projects.
As construction economists noted, total employment in the industry increased by 216,000, or 2.7%, in the 12 months ended in January.
Ken Simonson, chief economist at AGC, said in a statement: “Although job gains were modest last month, other evidence suggests there is still strong demand for workers.”
For example, Simonson points to construction wage increases rising faster than other industries, as well as “near-record” job openings and gains in overall construction spending in December.
Unemployment rate: mixed picture
One negative note from the BLS report was that the construction unemployment rate rose significantly in January to 6.9% from 4.4% in December. But year-over-year, the industry unemployment rate was flat compared to the January 2023 level.
And Anirban Basu, chief economist at Associated Builders and Contractors, said last month’s construction rate was “tied for the third-lowest January rate on record.”
BLS jobs figures are adjusted for seasonal variations; office unemployment rates are not seasonally adjusted.
Architectural, engineering and related services, which the BLS classifies separately from construction, posted an increase of 9,900 in January.
In all, the U.S. gained 353,000 nonfarm jobs in January, a “stunning” level, Basu said.
