US construction employment up in April
07 May 2024
Following analysis that suggested volatile jobs numbers were an ‘aberration’, the US Associated Builders and Contractors (ABC) announced the construction industry added 9,000 jobs, based on data from the US Bureau of Labor Statistics.
US construction employment growth for April 2024 vs. April 2023. (Source: US Bureau of Labor Statistics)
Non-residential construction increased 7,800 jobs, with growth in all three subcategories: non-residential speciality trade (6,600 positions added), non-residential building (900 positions added), and civil engineering (600 positions added).
ABC said the construction unemployment rate fell to 5.2% in April. Unemployment across all industries rose from 3.8% in March to 3.9% last month.
On a year-over-year basis, industry employment has increased by 258,000 jobs, an increase of 3.2%, according to ABC.
The trade association’s chief economist Anirban Basu said, “It is really quite remarkable that the nation’s non-residential construction sector continues to add jobs so consistently in an environment characterized by elevated project financing costs.”
What is driving US construction growth?
He said three segments, in particular, are driving US construction activity.
“At the heart of growing demand for construction workers in America is the prevalence of megaprojects in many parts of the country, including major manufacturing plants, data centres and public works,” he said.
While 2024’s first quarter jobs reports were up-and-down, Basu said the strong showing in April should inspire confidence.
US construction employment statistics for April 2024. (Source: US Bureau of Labor Statistics)
“Based on ABC’s Construction Confidence Index, there is more hiring to come,” said Basu. “While there is observable weakness in certain industry segments, particularly in the challenging office market, ongoing spending growth in other construction segments has thus far more than fully countervailed that softness.
“Many megaprojects are just now beginning construction, strongly suggesting a stable U.S. non-residential construction labour market for months to come. Such considerations are also consistent with relatively rapid increases in construction worker compensation during the balance of 2024.”
