Construction employment increased by 20,000 jobs in July but the gains were limited to housing, while employment related to infrastructure and nonresidential building construction slipped by 4,000, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned that non-housing construction job losses will continue unless the federal government provides infrastructure funding for state and local budgets, enacts liability reforms and other relief measures.
“It is gratifying that the construction industry continued to add jobs in July, but last month’s gains were entirely in residential building and specialty trades,” said Ken Simonson, the association’s chief economist. “It is likely that many nonresidential jobs are in jeopardy following the completion of emergency projects and ones begun before the pandemic. Projects that had been scheduled to start this summer or later are being canceled by both public agencies and private owners, while few new facilities are breaking ground.”
The employment pickup in July follow gains of 163,000 jobs in June and 456,000 in May, the economist noted. Nevertheless, construction employment in July remained 444,000 jobs or 5.6% below the recent peak in February.
Residential building and specialty trade construction firms—firms that concentrate on residential new construction, additions and renovations—accounted for 24,000 additional jobs in July. In contrast, employment among nonresidential segments declined by 4,000 jobs.
Compared to the most recent peak in February, employment in the heavy and civil engineering construction segment of the industry, representing firms that work mainly on highways and other infrastructure—was 7.4% below the February total. Employment at nonresidential building and specialty trade construction firms was 6.8% less than in February. Employment at residential building and specialty trade construction firms combined slipped by a more modest 4.1%.
The industry’s unemployment rate in July was 8.9%, with 870,000 former construction workers idled. These figures were more than double the July 2019 figures and were the highest July totals since 2013 and 2012, respectively.
Association officials said the best way to avoid the expected future construction job losses is for federal officials to quickly enact and implement funding for infrastructure, pass needed liability reforms and other pro-growth recovery measures. They said that investing in infrastructure will add to employment in many manufacturing, trucking and other sectors and will create assets that improve productivity, safety and well-being for all.
“It is vital for officials of both parties, both sides of Capitol Hill, and the Administration to come to agreement promptly on meaningful increases in infrastructure funding and other recovery measures,” said Stephen E. Sandherr, the association’s chief executive officer. “Without quick action, the nonresidential job losses that began in July will be quickly worsen and the nation will lose a golden opportunity to start on improving infrastructure at a time of high labor availability and low materials and borrowing costs.”
Related Stories
Market Data | Oct 17, 2022
Calling all AEC professionals! BD+C editors need your expertise for our 2023 market forecast survey
The BD+C editorial team needs your help with an important research project. We are conducting research to understand the current state of the U.S. design and construction industry.
Market Data | Oct 14, 2022
ABC’s Construction Backlog Indicator Jumps in September; Contractor Confidence Remains Steady
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5.
Market Data | Oct 12, 2022
ABC: Construction Input Prices Inched Down in September; Up 41% Since February 2020
Construction input prices dipped 0.1% in September compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.
Laboratories | Oct 5, 2022
Bigger is better for a maturing life sciences sector
CRB's latest report predicts more diversification and vertical integration in research and production.
Market Data | Aug 25, 2022
‘Disruptions’ will moderate construction spending through next year
JLL’s latest outlook predicts continued pricing volatility due to shortages in materials and labor
Market Data | Aug 2, 2022
Nonresidential construction spending falls 0.5% in June, says ABC
National nonresidential construction spending was down by 0.5% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Jul 28, 2022
The latest Beck Group report sees earlier project collaboration as one way out of the inflation/supply chain malaise
In the first six months of 2022, quarter-to-quarter inflation for construction materials showed signs of easing, but only slightly.
Hotel Facilities | Jul 28, 2022
As travel returns, U.S. hotel construction pipeline growth follows
According to the recently released United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. construction pipeline stands at 5,220 projects/621,268 rooms at the close of 2022’s second quarter, up 9% Year-Over-Year (YOY) by projects and 4% YOY by rooms.
Codes and Standards | Jul 22, 2022
Hurricane-resistant construction may be greatly undervalued
New research led by an MIT graduate student at the school’s Concrete Sustainability Hub suggests that the value of buildings constructed to resist wind damage in hurricanes may be significantly underestimated.
Market Data | Jul 21, 2022
Architecture Billings Index continues to stabilize but remains healthy
Architecture firms reported increasing demand for design services in June, according to a new report today from The American Institute of Architects (AIA).