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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, an increase of 0.3 % compared to May. 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 continues to be one of the top industries for employment growth in the US, along with health care, social assistance and government.
The 27,000 new jobs were mainly driven by non-residential construction, with continued strong performance not only in non-residential building construction and the heavy construction and civil engineering categories, but a steady increase in specialist contractors non-residential, which added 9,200 new jobs in June alone.
Heavy construction and civil engineering posted an increase of 6,300 jobs, and nonresidential building construction added 5,700.
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 fell to 3.3%, one of the lowest ever recorded by the BLS, which was highlighted by AGC and the Associated Builders and Contractors as a sign that labor shortages is limiting further 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.
