Construction employment is still expanding, but at a modest pace, according to the Bureau of Labor Statistics. The bureau said in its latest jobs report, released Jan. 10, it estimated that the industry gained 8,000 jobs in December.
The report also showed that all construction segments posted gains in December, although some of those increases were relatively small.
Nonresidential specialty trade contractors were the best performers among segments, adding 3,900. Building construction gained 3,700.
Heavy construction and civil engineering also increased, but by only 600 jobs.
The BLS jobs numbers are estimates and are subject to revisions in the coming months.
In another metric, the BLS said construction employment rose by 196,000, or 2.4%, in the 12 months ended in December.
The sector’s unemployment rate in December was 5.2%, up from 4.6% in November. It was also a 4.4% increase over the previous year.
BLS jobs statistics are also adjusted for seasonal changes. Their unemployment rates are not seasonally adjusted.
Architectural, engineering and related services, which the BLS classifies separately from construction, posted a gain of 7,400 for the month.
Analysis of construction economists
More broadly, the economy added 256,000 jobs in December, up from 212,000 in November. The overall unemployment rate was 4.1%, up from 3.8% in November.
Anirban Basu, chief economist at Associated Builders and Contractors, said in a statement: “December’s employment data is good for the overall economy, but bad for the construction industry.”
Basu noted that the overall increase of 256,000 is the biggest monthly gain since March. But he said: “Job growth in construction, on the other hand, has clearly slowed in recent months.”
Construction added roughly 10,000 jobs last November and 8,000 in October. These employment numbers were well below the 25,000 job gains reported in September.
Bond yields rose in the wake of the BLS report, Basu said, suggesting the Federal Reserve may not cut interest rates in the first half of 2025.
Ken Simonson, chief economist for the Associated General Contractors of America, said in a statement: “While construction job gains have slowed recently, the industry is still adding workers at a stronger pace than the economy in general”. Simonson added: “Construction employment should grow faster in 2025, assuming contractors can find enough skilled workers to meet demand.”
