Non-Residential Construction Adds Modest 4,400 jobs in January
The construction industry added 4,000 jobs on net in January, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics.
 |
On a year-over-year basis, industry employment has increased by 178,000 jobs, an increase of 2.2%. Nonresidential construction employment increased by 4,400 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 5,600 positions, followed by nonresidential building, which added 1,100 jobs. Heavy and civil engineering lost 2,300 jobs last month.
The construction unemployment rate rose to 6.5% in January. Unemployment across all industries decreased from 4.1% in December to 4.0% last month.
“Construction hiring has slowed to a crawl since October, with the industry averaging just 6,000 net new jobs per month,” said Anirban Basu, ABC chief economist. “This is largely a reflection of weakness in the residential sector, which actually lost 200 jobs in January."
Taking into account the ongoing effects of high interest rates and the decline in the number of housing units under construction, Basu anticipates that residential construction employment should continue to pull back over the next few quarters.
“Slowing demand for labor on the residential side of the industry could very well benefit nonresidential contractors,” he said. “Average hourly earnings for construction workers were up 4.1% on a year-over-year basis in January. While that’s still fast wage growth by historical standards, it’s also the smallest annual increase since 2021."
According to ABC's Constsruction Confidence Index, most contractors are expecting to expand their staffing levels in the first six months of 2025. He suggested that the availability of workers who would otherwise work on the residential side of the industry should help the non-residential wage growth return to healthier levels.
CONTRACTOR SUPPLY MAGAZINE
The February/March 2025 issue of Contractor Supply magazine is here!
Our cover story, Building Better Relationships Safely, through its client and vendor relationships, Verona Safety Supply in Madison, Wisconsin, has been keeping a variety of industries safe since 1997.
Also in this issue are Industry Updates on Concrete Tools; Diamond Blades and Hole Saws; and Gas Engine Equipment.
This digital edition, sponsored by BECK AMERICA Inc., is fully searchable and contains live links to every advertiser and new product listing. Click away!
| Read the Articles Read the Digital Edition |
