Construction Adds 15,000 Jobs in June
The construction industry added 15,000 jobs on net in June, according to an Associated Builders and Contractors analysis of government data.
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On a year-over-year basis, industry employment has increased by 121,000 jobs, or 1.5%. Nonresidential construction employment expanded by 9,200 positions on net, with growth registered in just 1 of 3 major subcategories. Nonresidential specialty trade added 12,400 jobs, while heavy and civil engineering and nonresidential building lost 2,800 and 400 jobs, respectively.
The construction unemployment rate fell to 3.4% last month. Unemployment across all industries declined from 4.2% in May to 4.1% in June.
“Virtually every economist has been waiting for indications of stagflation,” said Anirban Basu, ABC chief economist. “The wait continues. June’s employment report, coupled with recent inflation data, indicate that the U.S. economy continues to demonstrate solid momentum, stable unemployment and declining inflation.”
June was the second consecutive month for construction to add jobs.
“While many will cheer this jobs report, some construction firm leaders may not be among that group,” said Basu. “While abating fears of recession are comforting, these data effectively slammed the door shut on a July Federal Reserve interest rate cut.”
He notes that a growing fraction of contractors is experiencing weakness in backlog as projects are postponed in an uncertain economic environment coupled with stubbornly elevated borrowing costs.
“At the same time, construction materials prices have begun to edge higher, in part because of substantial tariffs on steel, aluminum, Canada, Mexico and China,” Basu said. “All things equal, that will drive up construction delivery costs, render more projects uneconomical and diminish contractor margins. Shifting immigration policy stands to reinforce these dynamics. Close attention should be paid to the profit margins component of ABC’s Construction Confidence Index in the coming months, which should reflect how these higher costs are affecting contractor operations.”
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