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
Building Technology | Jun 18, 2024
Could ‘smart’ building facades heat and cool buildings?
A promising research project looks at the possibilities for thermoelectric systems to thermally condition buildings, writes Mahsa Farid Mohajer, Sustainable Building Analyst with Stantec.
University Buildings | Jun 18, 2024
UC Riverside’s new School of Medicine building supports team-based learning, showcases passive design strategies
The University of California, Riverside, School of Medicine has opened the 94,576-sf, five-floor Education Building II (EDII). Created by the design-build team of CO Architects and Hensel Phelps, the medical school’s new home supports team-based student learning, offers social spaces, and provides departmental offices for faculty and staff.
Healthcare Facilities | Jun 18, 2024
A healthcare simulation technology consultant can save time, money, and headaches
As the demand for skilled healthcare professionals continues to rise, healthcare simulation is playing an increasingly vital role in the skill development, compliance, and continuing education of the clinical workforce.
Mass Timber | Jun 17, 2024
British Columbia hospital features mass timber community hall
The Cowichan District Hospital Replacement Project in Duncan, British Columbia, features an expansive community hall featuring mass timber construction. The hall, designed to promote social interaction and connection to give patients, families, and staff a warm and welcoming environment, connects a Diagnostic and Treatment (“D&T”) Block and Inpatient Tower.
Concrete Technology | Jun 17, 2024
MIT researchers are working on a way to use concrete as an electric battery
Researchers at MIT have developed a concrete mixture that can store electrical energy. The researchers say the mixture of water, cement, and carbon black could be used for building foundations and street paving.
Codes and Standards | Jun 17, 2024
Federal government releases national definition of a zero emissions building
The U.S. Department of Energy has released a new national definition of a zero emissions building. The definition is intended to provide industry guidance to support new and existing commercial and residential buildings to move towards zero emissions across the entire building sector, DOE says.
Multifamily Housing | Jun 14, 2024
AEC inspections are the key to financially viable office to residential adaptive reuse projects
About a year ago our industry was abuzz with an idea that seemed like a one-shot miracle cure for both the shockingly high rate of office vacancies and the worsening housing shortage. The seemingly simple idea of converting empty office buildings to multifamily residential seemed like an easy and elegant solution. However, in the intervening months we’ve seen only a handful of these conversions, despite near universal enthusiasm for the concept.
Healthcare Facilities | Jun 13, 2024
Top 10 trends in the hospital facilities market
BD+C evaluated more than a dozen of the nation's most prominent hospital construction projects to identify trends that are driving hospital design and construction in the $67 billion healthcare sector. Here’s what we found.
Adaptive Reuse | Jun 13, 2024
4 ways to transform old buildings into modern assets
As cities grow, their office inventories remain largely stagnant. Yet despite changes to the market—including the impact of hybrid work—opportunities still exist. Enter: “Midlife Metamorphosis.”
Affordable Housing | Jun 12, 2024
Studio Libeskind designs 190 affordable housing apartments for seniors
In Brooklyn, New York, the recently opened Atrium at Sumner offers 132,418 sf of affordable housing for seniors. The $132 million project includes 190 apartments—132 of them available to senior households earning below or at 50% of the area median income and 57 units available to formerly homeless seniors.
