Construction Industry Adds 25,000 Jobs in July Despite Rise in Unemployment

Posted August 6, 2024

The construction industry added 25,000 jobs in July as the industry experienced an increase of 3.0% in employment year-over-year.

The surge in construction jobs follows an unemployment rate increase of 3.9% in July, according to the U.S. Bureau of Labor Statistics.

An analysis of the Bureau’s data was conducted by the Associated Builders and Contractors (ABC) and found nonresidential construction employment increased by 16,200, nonresidential specialty trade contractors increased by 11,300 and heavy and civil engineering and nonresidential building added 2,900 and 2,000 jobs, respectively.

Unemployment across all industries rose from 4.1% in June to 4.3% in July.

ABC chief economist Anirban Basu believes the unemployment rates are a sign of a recession still hovering above.

“While it is true that many economists have been suggesting this for more than two years, the recent slowing in economic activity feels different,” Basu said in the release. “Unemployment is climbing rapidly. Consumer spending growth has become more sluggish. U.S. equity markets are generating large losses, an indication that America is caught in a growth scare and that there is a growing consensus that the Federal Reserve has waited too long to begin reducing interest rates.”

While the construction industry has found workers to hire, ABC found that nonresidential construction spending decreased in June, indicating contractors are in a “slowdown mode.”

Private nonresidential spending fell 0.1%, while public nonresidential construction spending was down 0.4% in June, according to the ABC.