Construction employment added 23,000 jobs on net in June, according to Associated Builders and Contractors. On a year-over-year basis, the industry has expanded by 198,000 jobs—an increase of 2.6%.
The construction unemployment rate rose from 3.5% in May to 3.6% in June. The national unemployment rate for all industries fell from 3.7% in May to 3.6% in June as the U.S. economy added 209,000 jobs.
Nonresidential construction added 12,200 jobs in June, with gains in two of the three subsectors. Heavy and civil engineering added 7,300 jobs for the month; nonresidential building added 5,400 jobs; and nonresidential specialty trade contractors lost 500 jobs.
“Theory suggests that the roughly 500-basis point increase in the federal funds rate over the past year would weigh on the demand for construction workers, yet the industry continues to add thousands of jobs each month,” said ABC Chief Economist Anirban Basu. “Contractors have collectively added jobs in 15 of the past 16 months, and ABC’s Construction Confidence Index suggests they will continue to increase staffing levels through the remainder of the year.
“The June jobs report, along with yesterday’s JOLTS data, confirm that labor shortages will continue to provide a stiff headwind to hiring,” Basu continued. “The construction unemployment rate inched up to 3.6% in June, but that’s still the second-lowest rate on record. Across all industries, unemployment remains near a 50-year low, and the prime age (24-54) employment-to-population ratio rose to the highest level since 2001. High interest rates and the cumulative effects of inflation will eventually catch up with the economy. For now, however, the labor market remains overheated.”
