Construction Employment Increased by 25,000 in September

WASHINGTON, Oct. 4—The construction industry added 25,000 jobs on net in September, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment is up by 238,000 jobs, an increase of 3.0%. 

Nonresidential construction employment increased by 17,900 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 17,000 positions. Heavy and civil engineering added 3,800 jobs while nonresidential building lost 2,900 positions.

The construction unemployment rate increased to 3.7% in September. Unemployment across all industries decreased from 4.2% in August to 4.1% last month.

“The construction industry added jobs for the fifth consecutive month despite labor shortages,” said ABC Chief Economist Anirban Basu. “The industry unemployment rate rose to 3.7% in September, but that’s still lower than in any month on record before the second half of 2018 and half a percentage point below the economywide unemployment rate. Hiring should persist in the coming months, with contractors expecting to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index.

“Beyond the construction industry, this jobs report blew past expectations,” said Basu. “U.S. employers added 254,000 jobs for the month, the most since March, and employment estimates for the previous two months were revised upward by a total of 72,000 jobs. While the ongoing strength of the labor market and consumer spending indicates that the economy has weathered high interest rates better than anyone thought possible, the combination of rising household debt levels and economic uncertainty surrounding geopolitics and the looming election will potentially weigh on growth in the coming months.”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

Associated Builders and Contractors is a national construction industry trade association established in 1950 that represents more than 23,000 members. Founded on the merit shop philosophy, ABC and its 67 chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.

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