Construction employment in the United States fell by 11,000 jobs in February, according to new government data analyzed by the Associated General Contractors of America. Both residential and nonresidential construction sectors experienced declines, following stronger hiring numbers reported in January.
“Contractors may be more reluctant to add workers amid uncertainty about how much they will pay for construction materials and demand for certain types of construction projects,” said Macrina Wilkins, the association’s director of market insights. “But even with the monthly drop, construction employment has grown at a faster rate during the past year than the broader economy.”
The total number of people employed in construction was 8,309,000 on a seasonally adjusted basis in February. Despite the recent monthly decrease, the industry added 42,000 jobs over the past year—a 0.5 percent increase—outpacing the overall nonfarm payroll growth rate of 0.1 percent.
Most job losses occurred in residential construction, which shed 7,100 positions last month. This included a decline of 9,500 jobs among residential specialty contractors that offset a gain of 2,400 jobs among residential building contractors. Nonresidential construction lost 3,800 jobs overall. Within this category, nonresidential building contractors added 4,100 positions while nonresidential specialty trade contractors lost 1,400 jobs. Heavy and civil engineering construction saw a decrease of 6,500 jobs.
Average hourly earnings for production and nonsupervisory employees—including most onsite craft workers and many office staff—increased to $38.52 in February. This marks a rise of 5.1 percent over the past year.
Association officials attributed some firms’ hesitation to hire to ongoing uncertainty regarding materials prices and project demand levels. They suggested that federal action could help reduce this uncertainty by passing a new surface transportation bill before current legislation expires at the end of September. The association has started a national campaign called America’s Moving Forward to encourage Congress to pass new transportation legislation on time.
“Congress can send a clear signal about construction demand by passing a new highway and transit bill before the current measure expires,” said Jeffrey D. Shoaf, the association’s chief executive officer. “As the single largest federal construction measure, the transportation bill is a significant driver of construction demand across the country.”
The Nevada Chapter of the Associated General Contractors of America represents general and specialty contractors within Nevada’s construction sector and advocates for industry interests through civic engagement and legislative efforts (https://www.nevadaagc.org/). The chapter also provides resources and promotes involvement within Nevada’s building community under its charter (https://www.nevadaagc.org/).
View the construction employment data.
