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Strong construction job growth continued last month, with the US Labor Department reporting on July 5 that the construction sector added 27,000 jobs in June. The unemployment rate in construction fell to 3.3%, another sign that the labor supply pressures of recent years are continuing.
This is much higher than the average monthly gain of 20,000 per month seen in the previous 12 months for the industry. According to the Bureau of Labor Statistics, construction remains one of the top industries for employment growth in the US, along with health care, social assistance and government.
Overall, non-residential construction jobs provided the biggest boost to the monthly job numbers, with non-residential subcategories and the heavy construction and civil engineering sector combining to add 21,200 of the estimated 27,000 new places.
By category, specialty trade contractors added a total of 11,600 jobs, the most of the top three categories, with nonresidential specialty trade firms contributing the most, 9,200 jobs.
Building contractors added approximately 8,800 total jobs, with nresidential building contractors contributing 5,700 of these positions. The hThe civil and heavy engineering construction category posted an overall increase of 6,300 jobs.
The continued demand for workers amid a hiring shortage is a continuing source of stress for companies in the industry, noted Ken Simonson, chief economist for the Associated General Contractors of America. “Finding enough skilled workers remains a bigger challenge for most companies than finding projects to work on.”
The industry’s unemployment rate, which fell to 3.3%, one of the lowest ever recorded by the BLS, was highlighted by AGC and the Associated Builders and Contractors as a sign that labor shortages limits construction growth. “The industry would have added jobs at an even faster pace if not for labor shortages,” observed Anirban Basu, ABC’s chief economist.
