Dive Brief:
- The construction industry added about 28,000 net jobs in November, indicating a pickup in hiring momentum, according to an Associated Builders and Contractors analysis of new Bureau of Labor Statistics data.
- Nonresidential construction accounted for nearly all of that growth, led by gains in all three subcategories: specialty trade contractors, nonresidential building and heavy and civil engineering.
- The industry’s unemployment rate held at 4.1% in November, which is below the 4.6% rate across all industries. Construction employment increased by 58,000 jobs year over year, a gain of 0.7%, according to the release.
Dive Insight:
The hiring jump in November suggests labor demand has stabilized after a sluggish start to the year, particularly across nonresidential construction.
“Construction industry job growth has picked up over the past three months,” Anirban Basu, ABC chief economist, said in the release. “The industry has added 52,000 jobs since August, a stark reversal from the 9,000 jobs lost during the first eight months of the year.”
Specialty trade contractors drove much of the recent growth, largely due to sustained demand tied to large-scale nonresidential projects. Hiring momentum among electricians also accelerated alongside the ongoing data center construction boom, said Basu.
“While overall industry employment growth may remain sluggish due to ongoing residential segment job losses, nonresidential contractors remain optimistic about their staffing levels,” said Basu in the release.
The job numbers in construction stand in stark contrast to the broader labor market. The U.S. as a whole shed 105,000 jobs in October and added 64,000 jobs in November. Nationally, the unemployment rate rose to 4.6%, the highest level since September of 2021, according to NBC News.
The hiring gains also come as construction employment has expanded across more parts of the country in recent months, though contractors in many regions continue to report difficulties finding qualified workers, according to a separate analysis from the Associated General Contractors of America.
