Construction unemployment rate drops to 11.3%

The national construction industry employment rate decreased to 11.3 percent during August, compared to 12.3 percent in July. Overall, employers within the industry added 1,000 jobs, but one economist doesn't necessarily see a silver lining.

“The fact that the construction industry unemployment rate in August declined to 11.3 percent—the lowest level since October 2008—seemed to be a pleasant surprise,” Associated Builders and Contractors Inc. Chief Economist Anirban Basu said in a news release. “But under further examination, this is largely due to former construction workers moving to other industries or leaving the workforce altogether."

Year-to-year, the construction industry has added 17,000 jobs, meaning it is one of the nation's slowest expanding industries, according to the release.

Employment statistics within the industry:

• The nonresidential building construction sector lost 2,400 jobs in August and had 4,900 less than the same month a year ago. August employment in the sector was 653,200.
• Residential building construction employment fell by 1,100 jobs in August but has increased by 5,200 jobs during the past year. In August, employment in the sector was 564,000.
• Nonresidential specialty trade contractor employment decreased by 6,400 jobs in August, and the sector is down by 18,900 jobs from the same month a year ago.
• Residential specialty trade contractors added 8,200 jobs during the months and 18,700 jobs from a year ago.
• During August, the heavy and civil engineering construction sector gained 2,800 jobs, and added 17,400 since August 2011.

The U.S. unemployment rate registered at 8.1 percent in August, compared to 8.3 percent in July.