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
| Oct 7, 2014
Structured, not stirred: The architecture of cocktails [infographic]
In this downloadable graphic, technologist Shaan Hurley dissects 37 cocktails and analyzes their architectural makeup.
| Oct 6, 2014
Moshe Safdie: Skyscrapers lead to erosion of urban connectivity
The 76-year-old architect sees skyscrapers and the privatization of public space to be the most problematic parts of modern city design.
| Oct 6, 2014
Houston's office construction is soaring
Houston has 19 million square feet of office space under construction, 54% more than a year ago, and its highest level since the booming 1980s, according to local news reports.
| Oct 6, 2014
Design activity at architecture firms finally back to pre-recession levels: AIA report
Gross billings at architecture firms have increased by 20% since 2011, according to a new report by the AIA.
| Oct 6, 2014
Retelling an old story: Why women are underrepresented in architecture
Women account for more than half of the U.S. population. But even with significant gains over the past 25 years, their numbers and positions among the ranks of practicing architects appear to have stalled.
| Oct 3, 2014
New survey tracks Americans’ attitudes towards transit use
A record 10.7 billion rides were taken on public transit in the United States last year. And a national survey of Americans finds that the speed, reliability, and cost, more than any other factors, determine people’s willingness and frequency of use.
| Oct 2, 2014
Effective use of building enclosure mock-ups within the commissioning process
Engineers from SSR offer advice and guidelines on implementing building enclosure mockups on any project.
| Oct 2, 2014
Budget busters: Report details 24 of the world's most obscenely over-budget construction projects
Montreal's Olympic Stadium and the Sydney Opera House are among the landmark projects to bust their budgets, according to a new interactive graph by Podio.
| Oct 1, 2014
Long-time competitors NAC|Architecture and Osborn merge
The combined firm has offices in California, Colorado, and Washington, and offers a wide range of services, from landscape architecture and graphic design to architecture and interior design.
| Oct 1, 2014
Philip Johnson's iconic Crystal Cathedral to be modernized, made 'intrinsically Catholic'
Johnson Fain and Rios Clementi Hale Studios have been commissioned by the Roman Catholic Diocese of Orange to upgrade the all-glass church in Garden Grove, Calif. The church acquired the property in 2012.
