Construction employment adds jobs in July

Construction employment increased by 20,000 jobs in July, according to www.abc.org. During the past three months, the industry has added 639,000 jobs, recovering about 59% of the industrywide jobs lost since the start of the COVID-19 pandemic.

The construction unemployment rate fell from 10.1% in June to 8.9% in July—an increase of 5.1 percentage points compared with the same time last year but a decrease of 1.2 percentage points compared with June. The national unemployment rate for all industries fell from 11.1% in June to 10.2% in July as the U.S. economy added 1.8 million jobs.

Nonresidential construction employment lost 4,000 jobs on net in July, and there were job gains in two of the three nonresidential segments; the bulk of job loss came from the nonresidential building subsector, which decreased by 9,300 jobs.

“For several weeks, contractors have noted an increase in project postponements and cancellations due to coronavirus impacts,” said Associated Builders and Contractors Chief Economist Anirban Basu. “July data reflect this reality, as many of the postponed or cancelled projects are in categories such as office, lodging and retail. Correspondingly, employment in the nonresidential building segments declined by more than 9,000 positions in July.

“At the same time, there appears to be a growing amount of work modifying existing structures,” Basu continued. “That helps explain the 3,500 jobs created within the nonresidential specialty trade segment, which, among other things, encompasses workers who handle air handling systems.”

Basu said the pace of recovery has slowed as the COVID-19 pandemic continues to surge in the U.S.

“The outlook for nonresidential construction spending is not especially favorable for the next year,” Basu said. “The pandemic remains stubbornly in place, and while today’s jobs numbers indicate ongoing economic recovery, the pace of recovery has softened in conjunction with viral resurgence. Commercial real estate fundamentals are in tatters, with the pandemic set to leave behind many shuttered restaurants, empty storefronts and vacated office suites. State and local government finances are also in dire shape, while the federal government’s Highway Trust Fund is on the verge of insolvency absent any congressional intervention. While contractors maintain a healthy level of backlog, according to ABC’s Construction Backlog Indicator, the trajectory of nonresidential construction during the months ahead will depend heavily upon the nature of economic stimulus and the extent policymakers prioritize construction and infrastructure.”

Date : Jan. 01, 0001