Non-residential construction employment increased by 2.51% in July.

According to an analysis of data by the American Builders and Contractors Association (ABC) released today by the US Bureau of Labour Statistics, in JulyConstruction industryAn additional 19,000 jobs were created.

year-on-yearIndustryNew employment positions totalled 198,000, representing a 2.51% increase. 

Non-residential construction employment increased by a net 10,600 positions, with growth occurring in two of three subcategories. Non-residential building added 10,500 jobs, while heavy and civil engineering added 2,200 positions. 

The unemployment rate in the construction sector rose to 3.91% in July. The unemployment rate across all sectors decreased from 3.61% in June to 3.51% last month.

ABC's chief economist Anil Basu stated: “The economy is slowing down, and inflation remains a concern.” “While many economists have reversed their forecasts of an imminent recession and concluded the Federal Reserve will achieve a soft landing, today's report serves as a reminder that risks persist. Not only is the economy decelerating, but wage pressures remain. Consequently, the battle against excessive inflation has not yet been won, suggesting the Fed may not continue raising interest rates."

“That said, non-residential building contractors continued to expand their payrolls,” said Basu. “General and public works contractors collectively employed thousands more in July. However, weakness in several commercial property sectors may help explain last month's job losses among non-residential contractors. Nevertheless, construction workers' wages continue to grow rapidly against a backdrop of structural skills shortages. According to data from the ADP Pay Insights report, wages for construction workers who remained in their roles increased by 6.41% over the past year – more than double the rate of inflation.