Construction employment continued to expand in July even as broader labor-market conditions weakened, providing contractors with another indication of sustained demand for nonresidential work. The construction industry added 22,000 jobs during the month, while nonresidential construction accounted for most of the increase, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data.
Nonresidential construction employment increased by 20,000 positions in July, with gains across building construction, specialty trades, and heavy and civil engineering.
Nonresidential specialty trade contractors recorded the largest increase, adding 15,400 jobs. Nonresidential building construction employment rose by 4,200 positions, while heavy and civil engineering construction added 400 jobs.
The broader construction industry has also expanded over the past year. Employment was 82,000 positions higher in July than a year earlier, representing a 1% increase.
The construction unemployment rate was 3.7% in July. That compared with a 4.1% unemployment rate across all industries.
The July construction employment gains came as overall U.S. nonfarm payroll employment declined by 23,000 during the month, according to the BLS. The agency also reported that employment growth estimates for the preceding two months were revised downward.
For construction businesses, the employment figures point to continued hiring activity in nonresidential segments despite softer conditions across the wider labor market. Specialty trade contractors accounted for most of the sector's monthly growth, making subcontractor labor availability an important factor for ongoing project execution.
The concentration of hiring in nonresidential specialty trades also aligns with continued activity in construction segments requiring significant mechanical, electrical, plumbing and other specialized labor.
The July employment figures show that construction hiring remained positive while the broader labor market showed signs of slowing. For owners and contractors, continued job growth in nonresidential construction indicates that demand for skilled construction labor remained active through July.
The data also reinforce the importance of workforce capacity for specialty contractors, which accounted for the largest share of the month's nonresidential employment gains.
Source: ABC Central Ohio.
