Florida Construction News Staff writer
The construction industry added 25,000 jobs in July, according to an analysis by the Associated Builders and Contractors (ABC) of data released by the U.S. Bureau of Labor Statistics. Over the past year, the industry has added 239,000 jobs, marking a 3.0% rise in employment.
Nonresidential construction was a significant contributor, adding 16,200 jobs across its three subcategories. Nonresidential specialty trade contractors led this growth with 11,300 new positions, followed by heavy and civil engineering with 2,900 jobs, and nonresidential building with 2,000 jobs.
Despite this growth, the construction unemployment rate climbed to 3.9% in July. Overall unemployment also increased from 4.1% in June to 4.3% last month.
ABC Chief Economist Anirban Basu commented on the broader economic context, suggesting that the U.S. may be heading into a recession. “Although economists have been predicting a downturn for over two years, the recent economic slowdown feels more pronounced. Unemployment is rising quickly, consumer spending is slowing, and U.S. equity markets are experiencing significant losses. This indicates a growing belief that the Federal Reserve has been slow to reduce interest rates,” Basu said.
Basu noted that despite the macroeconomic challenges, the construction industry’s addition of 25,000 jobs in July might seem surprising. Historically, nonresidential construction activity tends to lag behind the overall economy by 12 to 18 months. The ABC’s Construction Confidence Index shows that contractors remain optimistic about the next six months. However, if the economic downturn continues, contractor confidence is likely to wane. Data from June’s construction spending report, released on August 1, suggest that many segments are already slowing down.
One notable exception is the construction related to manufacturing. This sector has seen the fastest growth, driven by substantial investments in chip-making facilities and other industrial projects, partly funded by federal subsidies. However, sectors not benefiting from such subsidies may face significant declines in performance if the economy continues to weaken and borrowing costs remain high.
For more details, including the Construction Backlog Indicator and Construction Confidence Index, as well as analysis of spending, employment, job openings, and the Producer Price Index, visit abc.org/economics.
Associated Builders and Contractors, a national construction industry trade association founded in 1950, represents over 23,000 members. Adhering to the merit shop philosophy, ABC and its 67 chapters support members in developing their workforce, securing projects, and delivering work safely, ethically, and profitably. Visit abc.org for more information.
