The U.S. construction industry added 48,000 jobs in December, including 22,800 jobs in nonresidential construction, according to the Bureau of Labor Statistics (BLS) preliminary estimate released Jan. 9.
November's estimate was unchanged in this release, remaining at 20,000 net new construction jobs, but nonresidential construction's November jobs figure was upwardly revised to 7,100 jobs.
"The U.S. economy added an average of 289,000 jobs per month during the final three months of 2014, indicating that momentum is surging as we transition into 2015," said Associated Builders and Contractors Chief Economist Anirban Basu. "This represents good news for the construction industry in 2015 and perhaps beyond, particularly with respect to office construction, retail construction, and other segments that benefit directly from accelerating job growth and decreasing unemployment. Overall, the economy has built steady momentum since the end of last winter adding an average of 246,000 jobs per month in 2014, an increase of more than 50,000 jobs added per month compared to 2013."
According to the BLS household survey, the national unemployment rate fell to 5.6% in December. This represents the lowest level of unemployment since June 2008. The declining unemployment rate is most likely a result of a labor force that shrank by 273,000 persons in December, after expanding in the previous two months. The labor force participation rate fell by 0.02% and now sits at 62.7%.
"One of the most interesting aspects of the report is that construction unemployment ended the year at 8.3 percent on a non-seasonally adjusted basis," said Basu. "While construction firm executives have been worried for years about the specter of construction skills shortages, the BLS data indicate there are plenty of people looking for jobs in construction. It is likely that many of these prospective workers lack the skills necessary to fill the openings construction firms are seeking to fill or live in areas where construction employment growth is much slower.
"Normally, high construction unemployment would imply slow rates of wage and compensation increases; however, ABC believes this is not the case," added Basu. "Because of the presence of skills mismatches, wage gains are likely to be sizeable in 2015 even in the presence of lofty rates of construction unemployment."
Construction employment for the month and the past year breaks down as follows:
• Nonresidential building construction employment expanded by 10,000 for the month and is up by 23,400 jobs, or 3.4 percent, since December 2013.
• Residential building construction employment expanded by 800 jobs in December and is up by 44,500 jobs, or 7 percent, on an annual basis.
• Nonresidential specialty trade contractors added 12,800 jobs for the month and employment in that category is up by 76,900 jobs, or 3.7 percent, from the same time one year ago.
• Residential specialty trade contractors gained 12,700 jobs in December and have added 87,600 jobs, or 5.6 percent, since December 2013.
• The heavy and civil engineering construction segment gained 11,600 jobs in December and job totals are up by 57,900, or 6.6 percent, on a year-over-year basis.
To view the previous employment report, click here.
Related Stories
University Buildings | Jun 7, 2022
Newfoundland university STEM building emulates natural elements, local traditions
Memorial University of Newfoundland (MUN) recently opened a new building that will provide interdisciplinary learning and research space for Faculties of Science and Engineering.
Codes and Standards | Jun 2, 2022
Guide helps schools find funding for buildings from federal, state government
New Buildings Institute (NBI) recently released a guide to help schools identify funding programs for facilities improvements available from federal and state government programs.
Airports | Jun 2, 2022
SOM-designed International Arrival Facility at Seattle’s Sea–Tac airport features the world’s largest aerial walkway
The Skidmore, Owings & Merrill (SOM)-designed International Arrivals Facility (IAF) at Seattle-Tacoma International Airport has opened, replacing a 50-year-old arrival facility.
Women in Design+Construction | Jun 2, 2022
Women in Architecture: How HMC Pioneers Gender Equality
A survey by the Association of Collegiate Schools of Architecture (ACSA) shows that while women account for nearly half of graduates from architecture programs, they only make up about 15 percent of licensed architects.
Codes and Standards | Jun 2, 2022
New design guide for hybrid steel-mass timber frames released
The American Institute of Steel Construction (AISC) has released the first-ever set of U.S. recommendations for hybrid steel frames with mass timber floors, according to a news release.
Mass Timber | Jun 2, 2022
Brooklyn is home to New York City’s first mass timber condo building
In the Brooklyn neighborhood of Park Slope, the newly completed Timber House is New York City’s first mass timber condominium building and its largest mass timber project (by height and square footage).
Codes and Standards | Jun 1, 2022
HKS, U. of Texas Dallas partner on brain health study
HKS and The University of Texas at Dallas’ Center for BrainHealth are conducting a six-month study to improve the way the firm’s employees work, collaborate, and innovate, both individually and as an organization, according to a news release.
Building Team | Jun 1, 2022
Pennsylvania’s Longwood Gardens to get a $250 million transformation
Longwood Gardens, a botanical garden with about 1,100 acres in Pennsylvania’s Brandywine Valley, recently announced plans to transform its core area of conservatory gardens.
Mass Timber | May 31, 2022
Tall mass timber buildings number 139 worldwide
An audit of tall mass timber buildings turned up 139 such structures around the world either complete, under construction, or proposed.
Hotel Facilities | May 31, 2022
Checking out: Tips for converting hotels to housing
Many building owners are considering repositioning their hotels into another property type, such as senior living communities and rental apartments. Here's advice for getting started.
