ABC: Construction Industry Sheds 7,000 Jobs in August

The construction industry lost 7,000 jobs in August, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. Industry employment has grown by 58,000 jobs over the past year, a 0.7% increase.

Nonresidential construction employment fell by 1,200 positions, with losses in building (–3,300) and specialty trades (–200). Heavy and civil engineering gained 2,300 jobs.

The construction unemployment rate dropped to 3.2%, matching the lowest level ever recorded. National unemployment rose to 4.3% in August from 4.2% in July.

“Industrywide employment is up by just 6,000 positions since December, and every subsegment except for heavy and civil engineering lost jobs in August,” said ABC Chief Economist Anirban Basu. He added that labor shortages appear to be worsening as immigration policy affects the supply of workers.

Basu noted rising materials prices and shrinking construction spending as additional pressures on the sector, though contractors remain optimistic about sales in the next six months, according to ABC’s Construction Confidence Index.