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Dive brief:
- The construction sector added about 28,000 net jobs in Novemberthat indicates an uptick in hiring momentum, according to a builders and contractors analysis of new data from the Bureau of Labor Statistics.
- Nonresidential construction accounted for nearly all of that growth, led by gains in all three subcategories: specialty commercial contractors, nonresidential building, and heavy and civil engineering.
- The industry unemployment rate remained at 4.1% in November, which is below the 4.6% rate across all industries. Construction employment increased by 58,000 jobs year over year, a 0.7% increase, the release said.
Diving knowledge:
The jump in November hiring suggests that labor demand has stabilized after a slow start to the year, particularly in non-residential construction.
“Job growth in the construction sector has picked up over the past three months,” ABC chief economist Anirban Basu said in the statement. “The industry has added 52,000 jobs since August, a marked reversal from the 9,000 jobs lost in the first eight months of the year.”
Specialty trade contractors drove much of the recent growth, largely due to sustained demand tied to large-scale non-residential projects. The recruitment drive among electricians also accelerated alongside the ongoing data center construction boomBasu said.
“While overall industry employment growth may remain sluggish due to job losses in the residential segment, non-residential contractors remain optimistic about their staffing levels,” Basu said in the statement.
The number of construction jobs stands in stark contrast to the broader labor market. The US as a whole shed 105,000 jobs in October and added 64,000 jobs in November. Nationally, the unemployment rate rose to 4.6%, the highest level since September 2021according to NBC News.
Hiring gains also come as construction employment has expanded more parts of the country in recent monthsthough contractors in many regions continue to report difficulty finding skilled workers, according to a separate analysis by the Associated General Contractors of America.
