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
| May 20, 2014
Kinetic Architecture: New book explores innovations in active façades
The book, co-authored by Arup's Russell Fortmeyer, illustrates the various ways architects, consultants, and engineers approach energy and comfort by manipulating air, water, and light through the layers of passive and active building envelope systems.
| May 20, 2014
Gensler envisions 'law firm of the future' with pop-up office project
Called "The Legal Office of the Future," the pop-up demonstration project made its debut this week at the annual conference for the Association of Legal Administrators in Toronto.
| May 20, 2014
Using fire-rated glass in exterior applications
Fire-rated glazing and framing assemblies are just as beneficial on building exteriors as they are on the inside. But knowing how to select the correct fire-rated glass for exterior applications can be confusing. SPONSORED CONTENT
| May 20, 2014
World's best new skyscrapers: Renzo Piano's The Shard, China's 'doughnut hotel' voted to Emporis list
Eight other high-rise projects were named Emporis Skyscraper Award winners, including DC Tower 1 by Dominique Perrault Architecture and Tour Carpe Diem by Robert A.M. Stern.
| May 19, 2014
What can architects learn from nature’s 3.8 billion years of experience?
In a new report, HOK and Biomimicry 3.8 partnered to study how lessons from the temperate broadleaf forest biome, which houses many of the world’s largest population centers, can inform the design of the built environment.
| May 19, 2014
Why e-commerce won't kill 'bricks and mortar' retail sector
Despite emerging structural challenges and newly-announced store closings, such as those of Radio Shack and Office Depot, the U.S. retail sector has continued on its solid recovery.
| May 16, 2014
BoA, USGBC to offer $25,000 grants for green affordable housing projects
The Affordable Green Neighborhoods Grant Program will offer 14 grants to developers of affordable housing in North America who are committed to building sustainable communities through the LEED for Neighborhood Development program.
| May 16, 2014
HED expands leadership in San Diego
Neville Willsmore, Thomas Christian join leadership team for Harley Ellis Devereaux.
| May 16, 2014
Toyo Ito leads petition to scrap Zaha Hadid's 2020 Olympic Stadium project
Ito and other Japanese architects cite excessive costs, massive size, and the project's potentially negative impact on surrounding public spaces as reasons for nixing Hadid's plan.
| May 15, 2014
Paints, coatings, and sealants: 10 new ways to seal the deal
Color-shifting finishes, dry-erase surfaces, and stain-blocking paints are highlighted in this round up of new offerings in paints, coatings, sealants, and finishes.
