flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction industry adds 20,000 employees in July but nonresidential employment dips

Market Data

Construction industry adds 20,000 employees in July but nonresidential employment dips

Association warns skid will worsen without new relief.


By AGC | August 10, 2020

Courtesy Pixabay

Construction employment increased by 20,000 jobs in July but the gains were limited to housing, while employment related to infrastructure and nonresidential building construction slipped by 4,000, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned that non-housing construction job losses will continue unless the federal government provides infrastructure funding for state and local budgets, enacts liability reforms and other relief measures.

“It is gratifying that the construction industry continued to add jobs in July, but last month’s gains were entirely in residential building and specialty trades,” said Ken Simonson, the association’s chief economist. “It is likely that many nonresidential jobs are in jeopardy following the completion of emergency projects and ones begun before the pandemic. Projects that had been scheduled to start this summer or later are being canceled by both public agencies and private owners, while few new facilities are breaking ground.”

The employment pickup in July follow gains of 163,000 jobs in June and 456,000 in May, the economist noted. Nevertheless, construction employment in July remained 444,000 jobs or 5.6% below the recent peak in February.

Residential building and specialty trade construction firms—firms that concentrate on residential new construction, additions and renovations—accounted for 24,000 additional jobs in July. In contrast, employment among nonresidential segments declined by 4,000 jobs.

Compared to the most recent peak in February, employment in the heavy and civil engineering construction segment of the industry, representing firms that work mainly on highways and other infrastructure—was 7.4% below the February total. Employment at nonresidential building and specialty trade construction firms was 6.8% less than in February. Employment at residential building and specialty trade construction firms combined slipped by a more modest 4.1%.

The industry’s unemployment rate in July was 8.9%, with 870,000 former construction workers idled. These figures were more than double the July 2019 figures and were the highest July totals since 2013 and 2012, respectively.

Association officials said the best way to avoid the expected future construction job losses is for federal officials to quickly enact and implement funding for infrastructure, pass needed liability reforms and other pro-growth recovery measures. They said that investing in infrastructure will add to employment in many manufacturing, trucking and other sectors and will create assets that improve productivity, safety and well-being for all.

“It is vital for officials of both parties, both sides of Capitol Hill, and the Administration to come to agreement promptly on meaningful increases in infrastructure funding and other recovery measures,” said Stephen E. Sandherr, the association’s chief executive officer. “Without quick action, the nonresidential job losses that began in July will be quickly worsen and the nation will lose a golden opportunity to start on improving infrastructure at a time of high labor availability and low materials and borrowing costs.”

Related Stories

Market Data | Jun 21, 2017

Design billings maintain solid footing, strong momentum reflected in project inquiries/design contracts

Balanced growth results in billings gains in all sectors. 

Market Data | Jun 16, 2017

Residential construction was strong, but not enough, in 2016

The Joint Center for Housing Studies’ latest report expects minorities and millennials to account for the lion’s share of household formations through 2035.

Industry Research | Jun 15, 2017

Commercial Construction Index indicates high revenue and employment expectations for 2017

USG Corporation (USG) and U.S. Chamber of Commerce release survey results gauging confidence among industry leaders.

Market Data | Jun 2, 2017

Nonresidential construction spending falls in 13 of 16 segments in April

Nonresidential construction spending fell 1.7% in April 2017, totaling $696.3 billion on a seasonally adjusted, annualized basis, according to analysis of U.S. Census Bureau data released today by Associated Builders and Contractors.

Industry Research | May 25, 2017

Project labor agreement mandates inflate cost of construction 13%

Ohio schools built under government-mandated project labor agreements (PLAs) cost 13.12 percent more than schools that were bid and constructed through fair and open competition.

Market Data | May 24, 2017

Design billings increasing entering height of construction season

All regions report positive business conditions.

Market Data | May 24, 2017

The top franchise companies in the construction pipeline

3 franchise companies comprise 65% of all rooms in the Total Pipeline.

Industry Research | May 24, 2017

These buildings paid the highest property taxes in 2016

Office buildings dominate the list, but a residential community climbed as high as number two on the list.

Market Data | May 16, 2017

Construction firms add 5,000 jobs in April

Unemployment down to 4.4%; Specialty trade jobs dip slightly.

Multifamily Housing | May 10, 2017

May 2017 National Apartment Report

Median one-bedroom rent rose to $1,012  in April, the highest it has been since January.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021