Heading into the July 4 holiday weekend, the Bureau of Labor Statistics’ June jobs report offered news to celebrate in the construction industry: an estimated overall increase of 11,000 jobs.
Hiring increased among non-residential builders, heavy/civil engineering contractors and non-residential specialty trade contractors, which combined for an estimated gain of 19,900 jobs last month, according to the BLS. By far, however, it was nonresidential specialty trade contractors that did most of the hiring, with that group increasing employment by an estimated 14,100 positions.
Meanwhile, residential contractors, both builders and specialty trade contractors, dragged down the overall increase in construction jobs in June, which combined to shed about 8,600 positions in the still-cooling housing sector.
Still, officials at the Associated Builders and Contractors (ABC) and Associated General Contractors of America (AGC) saw the BLS report as positive.
“Today’s employment report was full of positive signs for the non-residential side of the industry,” ABC chief economist Anirban Basu said in a statement. “The non-residential segment continued to add jobs in June and has grown several times faster than the economy average over the past 12 months.”
Noting that the construction industry’s jobless rate rose to 4.7% in June, easing upward wage pressures, Basu commented: “Labor supply appears adequate to fuel ongoing hiring. With ABC contractors indicating ongoing hiring intentions, according to the ABC Construction Confidence Index, the industry looks likely to continue expanding its employment base over the course of the months.”
“Non-residential construction firms have consistently increased their workforces and increased wages at higher rates than other employers,” AGC Chief Economist Ken Simonson agreed in a statement.
Noting the estimated gain in the heavy and civil engineering sector of 2,600 positions in June, Simonson said, “The highest percentage job gains are in the sector that is vulnerable to a lapse in federal support for investments in roads, bridges and transit.”
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