Construction employment continued its upward trend, adding 11,000 jobs last month, the Bureau of Labor Statistics reports, with the industry posting its 10th consecutive monthly increase. Architectural, engineering and related services, which are classified separately from construction, posted an increase of 9,900 jobs in January.
Almost every segment of construction posted gains last month, 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 increases came despite widespread cold weather slowing progress on projects.
As construction economists noted, total employment rose by 216,000, or 2.7%, in the 12 months ended in January.
“While job gains were modest last month, other evidence suggests there is still strong demand for workers,” AGC chief economist Ken Simonson said in a statement.
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 in the bureau’s 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.
cLast month’s construction rate was “stuck at the third-lowest January rate on record,” it says Anirban Basu, chief economist at Associated Builders and Contractors.
Office occupancy figures are adjusted for seasonal variations; unemployment rates are not seasonally adjusted.
In all, the U.S. gained 353,000 nonfarm jobs in January, a “stunning” level, Basu says.
