Construction employment added 23,000 jobs on net in February, according to Associated Builders and Contractors. On a year-over-year basis, the industry has expanded by 215,000 jobs—an increase of 2.7%.
The construction unemployment rate rose from 6.9% in January to 7% in February. The national unemployment rate for all industries increased from 3.7% in January to 3.9% in February as the U.S. economy added 275,000 jobs.
Nonresidential construction added 24,200 jobs in February, with growth in all three subsectors. Heavy and civil engineering added 12,500 jobs; nonresidential specialty trade contractors added 7,400 jobs; and nonresidential building added 4,300 jobs.
“In February, we saw evidence that contractors continue to add workers, fulfilling expectations,” said ABC Chief Economist Anirban Basu. “Employment growth happened in a variety of nonresidential subsegments, which is quite remarkable given headwinds such as high project financing costs, elevated construction service delivery costs and lingering recessionary fears.
“Though the February jobs report and the Construction Confidence Index data both indicate ongoing industry momentum, there remain reasons for concern,” Basu continued. “Contractors whose clients are project owners who rely on the availability of private financing have been reporting higher numbers of project delays. ABC’s Construction Backlog Indicator declined last month, indicating that, while the industry continues to expand, a growing fraction of nonresidential contractors may be feeling the effects of a still-restrictive monetary environment.”
