Construction employment lost 9,000 jobs on net in March, according to Associated Builders and Contractors. On a year-over-year basis, the industry has expanded by 196,000 jobs—an increase of 2.5%.
The construction unemployment rate fell from 6.6% in February to 5.6% in March. The national unemployment rate for all industries fell from 3.6% in February to 3.5% in March as the U.S. economy added 236,000 jobs.
Nonresidential construction lost 1,800 jobs in March, with declines in two of the three subsectors. Heavy and civil engineering added 7,100 jobs for the month; nonresidential building lost 2,800 jobs; and nonresidential specialty trade contractors lost 6,100 jobs.
“The March employment report may hint at growing economic weakness in the months to come,” said ABC Chief Economist Anirban Basu. “While the nonresidential construction industry lost fewer than 2,000 jobs, the addition of jobs in publicly financed construction categories masks more substantial weakness in private segments. It is precisely those private segments that tend to be most affected by slowing economic growth, deteriorating confidence and concerns regarding the nation’s banking system.
“While the nation continues to progress economically, headwinds are building,” Basu continued. “Recession remains a likely outcome within the next 12 months. Contractors generally report healthy backlog and confidence regarding the next six months, but the industry may be positioned for meaningfully weaker conditions in 2024.”
