The job report of the Office of Labor Statistics of May 2025, published on June 6, was a case of good news and a bad news for contractors, the result of reducing the residential construction activity.
Non -residential contractors provided the good news, which occupied about 11,300 new positions in general, with the contractors of non -residential buildings that added 3,100 positions, heavy and civil engineering companies that add 3,700 jobs and non -residential specialized companies hiring about 4,500 estimated workers during May.
In the meantime, companies working in the residential construction sector reduced approximately 7,500 jobs, according to the report. This global decline was from residential specialized trade companies that reduced 11,000 positions, while residential buildings added 3,600 employees.
In a press release, Anirban Basu, a chief economist for associate builders and contractors, said the nature of the good news of the work report, which stated that “the non -residential construction segment has added jobs more than double the rate of the widest economy over the last 12 months”.
At the same time, Basu noticed that, “despite healthy non -residential hiring, the largest industry has added only 25,000 jobs from January to May.”
“This is the growth of the lowest five -month occupation since 2020 and provides a clear indication that high interest rates, tight loans standards, and the uncertainty of policy weigh in the boost of the industry,” he added.
In his statement to the monthly report of jobs, he associated the general contractors of America, which, in general, the construction industry has added jobs each month for more than a year.
However, AGC’s main economist, Ken Simonson, stated that “the constant changes in the rates and other policies that affect the cost and demand for construction have led to a significant slowdown in recruitment.”
Jeffrey D. Shoaf, CEO of AGC, added: “ Construction companies continue to hire and increase salaries, but the growth rate has slowed down as the demand for certain types of projects cools. As federal officials provide more security on rates, taxes and investment levels, the demand for projects is likely to occur ”.
