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
| Feb 24, 2022
Signs of ‘Antiwork’ appear in the architecture industry
Reddit's r/Antiwork forum highlights the mounting pressures everyday workers face in a purely capitalistic society. AEC industry professionals are not immune to these pressures.
Office Buildings | Feb 23, 2022
The Beam on Farmer, Arizona’s first mass timber, multi-story office building tops out
The Beam on Farmer, Arizona’s first mass timber, multi-story office building, topped out on Feb. 10, 2022.
Codes and Standards | Feb 21, 2022
More bad news on sea level rise for U.S. coastal areas
A new government report predicts sea levels in the U.S. of 10 to 12 inches higher by 2050, with some major cities on the East and Gulf coasts experiencing damaging floods even on sunny days.
Wood | Feb 18, 2022
$2 million mass timber design competition: Building to Net-Zero Carbon (entries due March 30!)
To promote construction of tall mass timber buildings in the U.S., the Softwood Lumber Board (SLB) and USDA Forest Service (USDA) have joined forces on a competition to showcase mass timber’s application, commercial viability, and role as a natural climate solution.
University Buildings | Feb 18, 2022
On-campus performing arts centers and museums can be talent magnets for universities
Cultural facilities are changing the way prospective students and parents view higher education campuses.
University Buildings | Feb 17, 2022
A vacated school in St. Louis is turned into a center where suppliers exchange ideas
In 1871, The Carondelet School, designed by Frederick William Raeder, opened to educate more than 400 children of laborers and manufacturers in St. Louis. The building is getting a second lease on life, as it has undergone a $2 million renovation by goBRANDgo!, a marketing firm for the manufacturing and industrial sectors.
Sponsored | BD+C University Course | Feb 17, 2022
Metal roofing trends
New ideas in design and constructability are radically changing how metal systems are used as roofing for commercial and institutional buildings. Behind the investment in these new kinds of expressions and construction approaches is a growing interest in improved performance and reduced environmental impact. Metal roofing systems can cut cooling and heating loads significantly, according to the EPA.
Data Centers | Feb 15, 2022
Data center boom: How two AEC firms plan to meet unprecedented demand for data center facilities
Ramboll's Jim Fox and EYP Mission Critical Facilities' Rick Einhorn discuss the recent joining of their companies at a time of unprecedented data center demand. BD+C's John Caulfield leads the discussion with Fox, Ramboll's Managing Director for the Americas, and Einhorn, EYP Mission Critical Facilities' Managing Director.
Architects | Feb 15, 2022
Binkley Garcia Architecture and Goodwyn Mills Cawood join forces in Nashville
Goodwyn Mills Cawood (GMC) is pleased to announce the acquisition of architecture and interior design firm Binkley Garcia Architecture in Nashville.
Resiliency | Feb 15, 2022
Design strategies for resilient buildings
LEO A DALY's National Director of Engineering Kim Cowman takes a building-level look at resilient design.