Construction posted strong employment results in August, as the industry added 34,000 positions during the month, including gains across all industry segments, the Bureau of Labor Statistics reported.
The latest monthly BLS jobs report, released Sept. 6, shows that nonresidential specialty contractors led the way among construction segments, adding 14,000 positions. Heavy construction and civil engineering also fared well, up 13,500.
The smallest gain came in nonresidential building construction and residential specialty trade contractors, each of which expanded by 800 jobs during the month.
The gain of 34,000 also marked a boost from July’s increase of 13,000.
Since last August, total construction employment has registered an increase of 228,000, or 2.8%, through August.
BLS jobs numbers for August and July are preliminary; It is not uncommon to see upward or downward adjustments in the subsequent months before the numbers are final.
ABC, AGC Economists intervene
Ken Simonson, chief economist at AGC, said in a statement: “Job growth in construction was the strongest in five months in August.” He added: “But the record low unemployment rate for job seekers with construction experience shows how hard it is for contractors to find skilled workers.”
The construction unemployment rate fell to 3.2% in August from 3.9% in July. It was lower than the previous year’s level, which was also 3.9%. AGC said the 3.2% figure was the lowest August rate in the history of the data series.
Office job numbers are seasonally adjusted, but their unemployment rates are not.
The construction unemployment rate fell to 3.2% in August from 3.9% in July. It was also down from the previous year’s level, which was also 3.9%. Simonson said the low level of the rate is a sign of steady demand for construction.
Anirban Basu, chief economist at Associated Builders and Contractors, said in a statement: “The August jobs report is perfectly consistent with the notion of a soft landing.”
He added: “Unemployment fell both across the economy and in the nation’s construction sector.”
Basu also said that “Federal Reserve officials continue to indicate that they are ready to cut interest rates, which is expected in the next two weeks.” The Fed’s next meeting is scheduled for September 19 and 20.
However, Basu added that “the level of concern has been rising among contractors.” He noted: “A lot of projects have been postponed recently” as borrowing costs remain high and lending conditions have tightened.
Overall, the economy expanded by 142,000 in August, a smaller-than-expected figure, according to published reports.
