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
Industry Research | Sep 1, 2016
CannonDesign releases infographic to better help universities obtain more R&D funding
CannonDesign releases infographic to better help universities obtain more R&D funding.
Industry Research | Aug 25, 2016
Building bonds: The role of 'trusted advisor' is earned not acquired
A trusted advisor acts as a guiding partner over the full course of a professional relationship.
Multifamily Housing | Aug 17, 2016
A new research platform launches for a data-deprived multifamily sector
The list of leading developers, owners, and property managers that are funding the NMHC Research Foundation speaks to the information gap it hopes to fill.
Hotel Facilities | Aug 17, 2016
Hotel construction continues to flourish in major cities
But concerns about overbuilding persist.
Market Data | Aug 16, 2016
Leading economists predict construction industry growth through 2017
The Chief Economists for ABC, AIA, and NAHB all see the construction industry continuing to expand over the next year and a half.
Multifamily Housing | Aug 12, 2016
Apartment completions in largest metros on pace to increase by 50% in 2016
Texas is leading this multifamily construction boom, according to latest RENTCafé estimates.
Market Data | Jul 29, 2016
ABC: Output expands, but nonresidential fixed investment falters
Nonresidential fixed investment fell for a third consecutive quarter, as indicated by Bureau of Economic Analysis data.
Industry Research | Jul 26, 2016
AIA consensus forecast sees construction spending on rise through next year
But several factors could make the industry downshift.
Architects | Jul 20, 2016
AIA: Architecture Billings Index remains on solid footing
The June ABI score was down from May, but the figure was positive for the fifth consecutive month.
Market Data | Jul 7, 2016
Airbnb alleged to worsen housing crunch in New York City
Allegedly removing thousands of housing units from market, driving up rents.