Contractors Hot Line is part of the Catalyst Communications Network publication family.
Contractors Hot Line is part of the Catalyst Communications Network publication family.
In March, the construction industry experienced robust growth, adding a total of 39,000 jobs, as per the latest report from the U.S. Bureau of Labor Statistics analyzed by the Associated Builders and Contractors. Over the past year, the industry has seen a substantial expansion, with a net increase of 270,000 jobs, marking a 3.4% rise.
“Today’s (April 5, 2024) release was a blockbuster jobs report and indicates that recession is not arriving anytime soon,” said ABC Chief Economist Anirban Basu. “The 39,000 jobs added by the nation’s construction segment was roughly twice the monthly growth observed over the past year. If one focuses purely on nonresidential construction, monthly job growth was nearly 80% faster than the one-year average.
Specifically, nonresidential construction saw significant gains, adding a staggering 24,600 positions. This growth was spread across all three subcategories, with nonresidential specialty trade leading the way by contributing 16,300 jobs. Additionally, heavy and civil engineering and nonresidential building sectors saw increases of 6,000 and 2,300 jobs, respectively.
The unemployment rate within the construction sector dropped to 5.4% in March, reflecting the overall positive trend in employment. Across all industries, the unemployment rate declined from 3.9% in February to 3.8% last month, indicating a broader improvement in the job market.
“As always, the jobs report was not completely positive,” said Basu. “Those in search of lower inflation and interest rates will not be comforted by this release. While economywide year-over-year wage growth softened to 4.1% in March, the monthly wage growth figure suggested a pace of compensation growth that will render it difficult for the Federal Reserve to substantially reduce interest rates in 2024. The notion that interest rates will remain higher for longer remains firmly in place, which means that project financing costs will likely be an ongoing issue for construction demand, especially in privately financed segments, for the foreseeable future.”