According to data released today by the US Bureau of Labor Statistics:
- The construction industry added 9,000 jobs on net in April. On a year-over-year basis, industry employment grew by 50,000 jobs, an increase of 0.6%.
- Nonresidential construction employment increased by 19,000 positions on net, with gains in all 3 subcategories.
- "Nonresidential construction employment rose at a healthy pace for the month and is up a respectable 2.0% over the past year. This strength can be traced to surging data center construction spending, which is up 34% over the past year."
Press Release from Associated Builders and Contractors, Inc (ABC)
ABC: Nonresidential Construction Adds Healthy 19,000 Jobs in April
WASHINGTON, May 8—The construction industry added 9,000 jobs on net in April, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 50,000 jobs, an increase of 0.6%.
Nonresidential construction employment increased by 19,000 positions, with gains in all three subcategories. Nonresidential specialty traded added the most jobs, increasing by 12,600 positions. Nonresidential building and heavy and civil engineering added 5,600 and 800 jobs, respectively, in April.
The construction unemployment rate was 3.8% in April. Unemployment across all industries remained unchanged at 4.3% and is 0.1 percentage point higher than it was a year ago.
“Construction employment expanded modestly in April, but that’s largely due to weakness on the residential side of the industry,” said ABC Chief Economist Anirban Basu. “Nonresidential construction employment rose at a healthy pace for the month and is up a respectable 2.0% over the past year. This strength can be traced to surging data center construction spending, which is up 34% over the past year. It also helps explain why ABC member expectations for hiring remain elevated, according to ABC’s Construction Confidence Index, despite tepid industrywide job growth.”
Press Release from Associated General Contractors of America (AGC)
Industry Employment Continues to Outpace Overall Job Growth Amid Strong Demand for Data Centers and Other Nonresidential Projects as Firms Continue to Boost Wages to Attract Workers
Construction employment rose by 9,000 jobs in April, as gains in nonresidential construction offset declines in residential activity, according to an analysis of new government data released today by the Associated General Contractors of America. Association officials said the latest employment figures align with federal job openings data showing contractors continue to retain workers and hire selectively despite broader economic uncertainty.
“The reason many construction firms added jobs last month is because of the strong demand for nonresidential projects, particularly for data centers,” said Macrina Wilkins, the association’s director of market insights. “Construction firms are paying a growing premium to attract enough people to be able to complete data centers and other projects.”
Construction employment totaled 8,321,000 in April, seasonally adjusted, an increase of 9,000 from March. Over the past 12 months, the industry has added 50,000 jobs, an increase of 0.6 percent, slightly outpacing the 0.2 percent increase in total nonfarm payroll employment.
Nonresidential construction employment increased by 19,000 positions in April and added 98,600 jobs over the past 12 months. Employment among nonresidential specialty trade contractors increased by 12,600 jobs for the month and 57,700 jobs over the year, while nonresidential building contractors added 5,600 employees in April and 18,600 over 12 months. Heavy and civil engineering construction employment increased by 800 positions for the month and 22,300 over the year.
Meanwhile, residential construction employment declined by 10,400 jobs in April and 49,200 positions over the past 12 months. Residential specialty trade contractors lost 8,900 positions for the month and 42,100 over the year, while residential building contractors shed 1,500 jobs in April and 7,100 over 12 months.
Average hourly earnings for production and nonsupervisory employees in construction, which covers most onsite craft workers as well as many office staff, increased to $38.73 per hour in April. That figure is 20.2 percent higher than the average for all private-sector production employees. Construction pay increased by 4.8 percent over the past year, compared to a 3.7 percent increase for production workers in the overall private sector.
Association officials noted that one of the fastest growing nonresidential construction segments continues to be data centers. They cautioned, however, that growing community push back to the construction of those facilities threatens to undermine overall construction job growth.
“Data center construction is one of the main reasons the construction industry continues to add jobs and boost wages faster than the overall economy,” said Jeffrey D. Shoaf, the chief executive officer of the Associated General Contractors of America. “The more communities do to restrict construction of data centers, the more likely future construction growth will be dampened or even decline.”
