Construction Industry Faces Job Losses in August Amid Mixed Outlook

WASHINGTON, DC — The development trade misplaced 7,000 jobs in August, based on knowledge launched by the US Bureau of Labor Statistics. On a year-over-year foundation, trade employment has grown by 58,000 jobs, a rise of 0.7%.

Nonresidential development employment decreased by 1,200 positions on internet, with losses in 2 of the three subcategories. Nonresidential constructing misplaced 3,300 jobs, whereas nonresidential specialty commerce misplaced 200 positions. Heavy and civil engineering added 2,300 jobs for the month.

The development unemployment fee dropped to three.2% in August. Unemployment throughout all industries elevated from 4.2% in July to 4.3% final month. 

“The development trade has now misplaced jobs in every of the previous three months,” mentioned Associated Builders and Contractors Chief Economist Anirban Basu. “Industrywide employment is up by simply 6,000 positions since December, and each subsegment aside from heavy and civil engineering misplaced jobs in August. Regardless of these job losses, development labor shortages look like worsening as immigration coverage weighs on the provision of staff; the development unemployment fee fell to three.2% in August, matching the bottom stage ever recorded.

“Development trade knowledge have been significantly downbeat since March,” mentioned Basu. “With materials prices rising and construction spending shrinking, it’s hardly a shock that the trade’s workforce is contracting. Regardless of these troubling indicators, contractors stay optimistic about their gross sales over the following six months, based on ABC’s Construction Confidence Index. Whereas that will replicate the notion that weak labor market knowledge will translate into accelerated fee cuts, there isn’t a assure {that a} decrease federal funds fee will translate into decrease borrowing prices given the present state of the bond market.”