The first monthly jobs report from the U.S. Bureau of Labor Statistics since Sept. 5 offered good news for the U.S. construction industry, announcing that contractors added about 19,000 jobs, a sharp change from a 7,000-position drop in August. For the overall US economy, BLS estimated that total non-farm payroll employment increased by 119,000 workers during September.
The construction sector showed overall gains, with construction contractors adding approximately 4,200 jobs, heavy and civil firms increasing employment by 4,900 positions and specialty contractors adding about 10,300 workers.
This overall gain for specialty contractors was entirely in the non-residential segment, which added 11,100 jobs during the month. At the same time, the BLS reported that positions in residential specialty trades decreased by 800.
The division between residential and non-residential contracting was reversed for building contractors. Companies in the first group did most of the hiring in September, adding about 3,900 jobs, while these. in the latter group only 300 new positions were taken during the month.
September’s construction jobs were welcome news considering the BLS had reported declines in each of the previous three months, Associated Builders and Contractors Chief Economist Anirban Basu noted.
“Despite the rebound, the industry has only added 2,000 jobs since Marchhe said. “While the weakness is largely concentrated in the residential segment, with non-residential employment growing at a modest pace over the past year, recent construction spending data suggest that activity in the non-residential segment is also beginning to contract.”
But Basu noted that according to the association’s construction confidence index, “contractors remain confident that hiring will pick up over the next six months,” adding that “nearly half of ABC members expect their staffing levels to increase over the next six months.”
Macrina Wilkins, senior research analyst at Associated General Contractors of America, noted concerns related to the decline in private sector construction.
“The employment data is consistent with August spending figures that show growing demand for public construction, including a large heavy civil component,” he said in a news release. “These public sector gains are being partially offset, however, by declining private sector demand for many types of construction projects.”
AGC CEO Jeffrey D. Shoaf commented: “Despite some significant economic uncertainties, construction companies remain optimistic enough to continue increasing their payrolls. The best way to sustain this momentum is by providing clarity on tariff levels, stabilizing material prices and developing a stronger workforce.”
