Construction employment, seasonally adjusted, totaled 8,260,000 in July, a gain of 25,000 from June and 239,000 (3.0%) year-over-year (y/y), according to AGC’s analysis of data the Bureau of Labor Statistics (BLS) posted today. The y/y growth rate outpaced the 1.6% increase in total nonfarm payroll employment. Residential construction employment rose by 9,100 in July (1,700 at residential building firms and 7,400 at specialty contractors) and 67,600 (2.0%) y/y. Nonresidential construction employment increased by 16,200 for the month (2,000 at building firms, 11,300 at specialty trade contractors, and 2,900 at heavy and civil engineering construction firms) and 172,300 (3.7%) y/y. Labor costs for nonresidential firms outpaced other sectors: seasonally adjusted average hourly earnings (AHE) for production and nonsupervisory employees rose 3.8% y/y for the total private sector, 4.4% for all construction (i.e., most craft and office workers), 5.3% (through June) for nonresidential building firms, and 5.1% (through June) for heavy and civil firms. The industry unemployment rate in July, not seasonally adjusted, was 3.9%, unchanged from July 2023, and the number of unemployed jobseekers with construction experience totaled 420,000, an increase of 10,000 (2.4%) y/y.
Construction spending (not adjusted for inflation) totaled $2.15 trillion in June at a seasonally adjusted annual rate, down 0.3% from the upwardly revised May rate but up 6.2% y/y, the Census Bureau reported on Thursday. Private nonresidential spending dipped 0.1% for the month. The largest subsegment, manufacturing, edged up 0.1%; power construction slid 0.6%; commercial slumped 0.8% (comprising warehouse, down 0.5%; retail, down 2.4%; and farm, up 3.5%); and office rose 0.6% (with data centers up for the 13th-straight month, by 1.7%, and other “offices” up 0.1%). Private residential spending slipped 0.3% (single-family, down 1.2%; multifamily, up 0.1%; and improvements, up 0.6%). Public construction declined 0.4%, with highway and street spending down 0.4% and educational down 0.9%. The bureau posted annual estimates for length of construction time by category and private nonresidential and state and local spending by state, along with interactive maps showing levels and annual changes. The steepest percentage increases were in Ohio for private nonresidential spending (113%) and Nevada for state and local spending (71%).
There were 295,000 job openings in construction, seasonally adjusted, at the end of June, a decrease of 119,000 (-29%) y/y, BLS reported on Tuesday. Hires for the full month totaled 328,000, a drop of 46,000 (-12%). Layoffs totaled 133, 000, an increase of 12,000 (10%), though the layoff rate (1.6% of employees) was a near-record low.
Construction employment, not seasonally adjusted, rose y/y from June 2023 to June 2024 in 215 (61%) of the 358 metro areas (including divisions of larger metros) for which BLS posts construction employment data, fell in 97 (27%), and was unchanged in 46, according to an analysis AGC released on Tuesday. (For most metros, BLS posts only combined totals for mining, logging, and construction; AGC treats these totals as construction-only.) The largest job gains again occurred in Houston-The Woodlands-Sugar Land (12,300 construction jobs, 5%); Baton Rouge, La. (8,400 construction jobs, 18%); and Las Vegas-Henderson-Paradise (8,200 construction jobs, 10%). Lawton, Okla. had the largest percentage gain (27%, 400 construction jobs), followed by Baton Rouge; Anchorage, Alaska (17%, 2,100 construction jobs); and Danville, Ill. (17%, 100 combined jobs). The largest job loss occurred in New York City (-7,100 combined jobs, -5%), followed by Minneapolis-St. Paul-Bloomington, Minn.-Wis. (-4,400 combined jobs, -5%). The largest percentage decrease occurred in Duluth, Minn.-Wis. (-11%, -1,200 combined jobs).
Construction industry compensation (wages, salaries, and benefits including required employer contributions) decreased 0.3%, seasonally adjusted, in the second quarter (Q2) of 2024, BLS reported on Wednesday. That was the first decline in the 24-year history of the series. Wages fell 0.8%. (The only previous decline in wages was -0.1% in Q3 2016.) Over four quarters, compensation increased 2.8% (the least since a 2.7% increase in Q1 2021) and wages increased 2.7% (the least since 2.7% in Q1 2018).
At the end of Q2, “there are 6,095 [hotel] projects with 713,151 rooms in the pipeline,” lodging data firm Lodging Econometrics reported on Monday. “This new all-time high represents a 9% [y/y] increase in projects and an 8% y/y increase in rooms compared to Q2 2023 totals.” All stages of the pipeline increased y/y. There were increases of 10% in projects and 4% in rooms under construction. Projects slated to start construction in the next 12 months increased 5% and 3%, respectively. Projects and room counts in the early planning stage jumped 13% and 15%, respectively.
Contractors are invited to fill out the 2024 Arcoro/AGC Workforce Survey. Results will be posted in late August.
