In February, the construction sector saw a net increase of 23,000 jobs, as per an analysis by Associated Builders and Contractors (https://www.abc.org/) of the latest U.S. Bureau of Labor Statistics data. Over the past year, industry employment has grown by 215,000 jobs, marking a 2.7% rise.
“In February, we saw evidence that contractors continue to add workers, fulfilling expectations,” said ABC Chief Economist Anirban Basu. “Employment growth happened in a variety of nonresidential subsegments, which is quite remarkable given headwinds such as high project financing costs, elevated construction service delivery costs and lingering recessionary fears.
Nonresidential construction employment also saw a positive trend, adding 24,200 positions overall, with growth evident across all three subcategories. Heavy and civil engineering saw the most significant increase, with 12,500 new positions. Nonresidential specialty trade and nonresidential building sectors added 7,400 and 4,300 jobs, respectively.
However, the construction unemployment rate increased to 7.0% in February, while unemployment across all industries rose from 3.7% in January to 3.9% last month.
“Though the February jobs report and the Construction Confidence Index data both indicate ongoing industry momentum, there remain reasons for concern,” said Basu. “Contractors whose clients are project owners who rely on the availability of private financing have been reporting higher numbers of project delays. ABC’s Construction Backlog Indicator declined last month, indicating that, while the industry continues to expand, a growing fraction of nonresidential contractors may be feeling the effects of a still-restrictive monetary environment.”
