Construction unemployment dips in July

Construction unemployment fell slightly during the month of July after construction spending dipped in June, according to separate reports.

Despite the loss of 6,000 jobs last month, the nation’s construction industry unemployment rate dropped to 9.1 percent in July on a non-seasonally adjusted rate, according to the U.S. Labor Department’s Aug. 2 employment report. That is down from 9.8 percent in June and 12.3 percent during July of last year. Overall, the construction labor force expanded during the past year to 8.43 million in July from 8.08 million in July 2012.

Nonresidential building construction employment increased by 300 jobs for the month and is up by 18,700 jobs, or 2.8 percent, since July 2012. Nonresidential specialty trade contractors lost 9,800 jobs for the month, but employment remains 1.8 percent higher compared to one year ago. Employment for heavy and civil engineering construction was down by 2,000 jobs for the month, but is up by 19,200 jobs, or 2.2 percent, on a year-over-year basis, according to the Labor Department’s report.

Residential building construction employment rose by 100 jobs in July and has expanded by 7,400 jobs, or 1.3 percent, during the past year. Residential specialty trade contractors added 6,200 jobs in July and have added 84,700 jobs, or 5.8 percent, since July 2012.

Today’s employment report is consistent with the June construction spending report, which indicated that overall construction spending declined by 0.6 percent and that nonresidential construction spending was off by 1 percent,” Associated Builders and Contractors Chief Economist Anirban Basu said in a news release. “That type of performance is not consistent with robust job creation, so it’s no surprise that the construction industry did not deliver net new jobs last month.”

On Aug. 1, the U.S. Census Bureau released its Construction Spending report, which found spending was down 0.6 percent in June compared to the previous month, but 3.3 percent higher than one year ago.

Nonresidential construction spending fell 1 percent in June and declined 4 percent during the past 12 months, with spending totaling $545.8 billion on a seasonally adjusted, annualized basis, according to the report.

Residential construction spending slipped 0.1 percent for the month, but is 17.6 percent higher than the same time last year.

Construction segments heavily financed by the private sector, including commercial and lodging-related construction, were down for the month, and office-related construction spending was up only slightly,” Basu said in a separate release. “The implication is that the pace of economic growth, which averaged less than 2 percent on an annualized basis during the first half of 2013, has not been enough to trigger or sustain meaningful private nonresidential construction increases.”

Spending was down in both the private and public sectors in June, according to the Census report. Private nonresidential construction slipped 0.9 percent, while public nonresidential construction spending decreased 1.1 percent for the month.[[In-content Ad]]