Nonresidential Construction Employment Grows 2.5% in July

According to an analysis of data from the Associated Builders and Contractors (ABC) released today by the U.S. Bureau of Labor Statistics, the month of July saw a significant increase in the number of workers in the United States.building industryAn additional 19,000 jobs were created.

Year-on-year.sectorAdded 198,000 new jobs, up 2.51 TP3T. 

Nonresidential construction employment increased by a net 10,600 jobs, with growth in two of the three subcategories. Nonresidential construction added 10,500 jobs, while heavy and civil engineering added 2,200 jobs. 

The construction unemployment rate rose to 3.91 TP3T in July. the unemployment rate for all industries fell to 3.51 TP3T last month from 3.61 TP3T in June.

“The economy is slowing and inflation remains problematic,” said ABC Chief Economist Anirban Basu. “While many economists have reversed their predictions of a near-term recession and concluded that the Federal Reserve will be able to achieve a soft landing, today's report is a reminder that risks remain. Not only is the economy slowing, but wage pressures remain. As a result, the war against hyperinflation has not yet been won, which means the Fed may not continue to raise rates.

“That said, nonresidential construction contractors continue to expand their payrolls,” Basu said. “General and public works contractors collectively employed thousands of people in July. However, weakness in several commercial real estate sectors may help explain the job losses among nonresidential contractors last month. Nonetheless, wages for construction workers continue to grow rapidly against a backdrop of structural skill shortages. According to data reported by ADP Pay Insights, wages for construction workers who stayed on the job have risen by 6.41 TP3T over the past year, more than double the rate of inflation.