Construction Industry Faces Job Losses in August Amid Mixed Outlook

WASHINGTON, DC — The development business misplaced 7,000 jobs in August, in response to information launched by the US Bureau of Labor Statistics. On a year-over-year foundation, business employment has grown by 58,000 jobs, a rise of 0.7%.

Nonresidential development employment decreased by 1,200 positions on web, with losses in 2 of the three subcategories. Nonresidential constructing misplaced 3,300 jobs, whereas nonresidential specialty commerce misplaced 200 positions. Heavy and civil engineering added 2,300 jobs for the month.

The development unemployment price dropped to three.2% in August. Unemployment throughout all industries elevated from 4.2% in July to 4.3% final month. 

“The development business has now misplaced jobs in every of the previous three months,” stated Associated Builders and Contractors Chief Economist Anirban Basu. “Industrywide employment is up by simply 6,000 positions since December, and each subsegment apart from heavy and civil engineering misplaced jobs in August. Regardless of these job losses, development labor shortages look like worsening as immigration coverage weighs on the provision of employees; the development unemployment price fell to three.2% in August, matching the bottom degree ever recorded.

“Development business information have been notably downbeat since March,” stated Basu. “With materials prices rising and construction spending shrinking, it’s hardly a shock that the business’s workforce is contracting. Regardless of these troubling indicators, contractors stay optimistic about their gross sales over the subsequent six months, in response to ABC’s Construction Confidence Index. Whereas that will replicate the notion that weak labor market information will translate into accelerated price cuts, there isn’t a assure {that a} decrease federal funds price will translate into decrease borrowing prices given the present state of the bond market.”