Construction employment increased by 42,000 jobs in February and by 223,000 or 3.0% over the past 12 months, as the industry’s unemployment rate hit a new February low, according to an analysis of new government data by the Associated General Contractors of America. Association officials said some of the gains were attributable to mild winter weather in many parts of the country last month but added that the main reason for the gains was strong demand for construction services.
“Contractors are off to a fast start in 2020, adding 91,000 jobs in the first two months—the most in nearly two years,” said Ken Simonson, the association’s chief economist. “Although some of the gains probably reflect unusually mild winter weather in much of the nation, there is no question that contractors have been upbeat about the volume of work available.”
Total construction employment climbed to 7,646,800, the highest level since July 2007, with gains in both residential and nonresidential employment. The 3.0% growth in construction employment between February 2019 and February 2020 was nearly double the 1.6% increase in total nonfarm payroll employment. Average hourly earnings in construction – a measure of all wages and salaries – increased 3.0% over the year to $31.35. That figure was 9.9% higher than the private-sector average of $28.52¬.
Simonson observed that both the number of unemployed workers with recent construction experience – 531,000 – and the unemployment rate for such workers – 5.5% – were the lowest ever for February in the 21-year history of those series. He said these figures are consistent with reports from contractors as part of the association’s annual outlook that experienced construction workers are hard to find.
The employment data were collected in mid-February. Since then, the novel coronavirus has begun to affect some industries, but there have been no reports of construction sites being affected or of projects being deferred or canceled, the economist noted.
Association officials said that it is hard to estimate whether the spreading coronavirus will have a significant impact on future demand for construction or the sector’s employment levels. They said the best way for Washington officials to address the economic uncertainty was to act quickly to pass measures to rebuild the nation’s airports, waterways, highways and transit systems. They added that the association was launching a new round of advertising via its Americans for Better Infrastructure Campaign to educate constituents and members of Congress on the economic benefits of investing in infrastructure.
“The industry clearly benefitted from strong demand in February, but it is unclear whether and how the coronavirus might impact construction employment,” said Stephen E. Sandherr, the association’s chief executive officer. “Passing new infrastructure measures will support needed fixes to our transportation network while adding a new level of stability in what are likely to be uncertain times.”
Related Stories
Market Data | Sep 17, 2018
ABC’s Construction Backlog Indicator hits a new high in second quarter of 2018
Backlog is up 12.2% from the first quarter and 14% compared to the same time last year.
Market Data | Sep 12, 2018
Construction material prices fall in August
Softwood lumber prices plummeted 9.6% in August yet are up 5% on a yearly basis (down from a 19.5% increase year-over-year in July).
Market Data | Sep 7, 2018
Safety risks in commercial construction industry exacerbated by workforce shortages
The report revealed 88% of contractors expect to feel at least a moderate impact from the workforce shortages in the next three years.
Market Data | Sep 5, 2018
Public nonresidential construction up in July
Private nonresidential spending fell 1% in July, while public nonresidential spending expanded 0.7%.
Market Data | Aug 30, 2018
Construction in ASEAN region to grow by over 6% annually over next five years
Although there are disparities in the pace of growth in construction output among the ASEAN member states, the region’s construction industry as a whole will grow by 6.1% on an annual average basis in the next five years.
Market Data | Aug 22, 2018
July architecture firm billings remain positive despite growth slowing
Architecture firms located in the South remain especially strong.
Market Data | Aug 15, 2018
National asking rents for office space rise again
The rise in rental rates marks the 21st consecutive quarterly increase.
Market Data | Aug 13, 2018
First Half 2018 commercial and multifamily construction starts show mixed performance across top metropolitan areas
Gains reported in five of the top ten markets.
Market Data | Aug 10, 2018
Construction material prices inch down in July
Nonresidential construction input prices increased fell 0.3% in July but are up 9.6% year over year.