Construction sector adds 27,000 jobs in June

WASHINGTON, DC — The construction industry added 27,000 jobs on net in June, 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 has increased by 235,000 jobs, an increase of 2.9%. 

Nonresidential construction employment increased by 21,200 positions on net, with growth in all three subcategories. Nonresidential specialty trade contractors added the most jobs for the month, (+9,200 jobs), followed by heavy and civil engineering (+6,300 jobs) and nonresidential building (+5,700 jobs).

The construction unemployment rate decreased to 3.3% in June. Unemployment across all industries rose from 4.0 in May to 4.1% last month.

“Despite indications that the broader economy is slowing, the construction industry continued to add jobs at a rapid pace in June,” said ABC Chief Economist Anirban Basu. “Contractors added another 27,000 jobs for the month, with hiring concentrated in the nonresidential segment. Nonresidential construction employment has expanded 3.8% over the past year, a rate of growth over twice as fast as that of the broader economy. With backlog still at healthy levels, according to ABC’s Construction Backlog Indicator, hiring should continue in the coming months.

“Of course, the Industry would have added jobs at an even faster pace if not for ongoing labor shortages,” said Basu. “The construction unemployment rate fell to 3.3% in June, the second-lowest level ever recorded. This is in stark contrast to the nationwide unemployment rate which, while still low by historical standards, rose to the highest level since November 2021.”

For more information on the Construction Backlog indicator, the Construction Confidence Index, and employment, visit abc.org/economics.

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