Construction employment is still expanding but at only a modest rate, according to the Bureau of Labor Statistics. The bureau said in its latest employment report, released on Jan. 10, estimating that the industry gained 8,000 jobs in December.
The report also showed that all construction segments posted gains for December, though some of those increases were relatively small ones.
Nonresidential specialty trade contractors performed the best among segments, adding 3,900. Buildings construction gained 3,700.
Heavy and civil engineering construction also edged up, but by just 600 jobs.
The BLS jobs figures are estimates and are subject to revisions in the succeeding couple of months.
In another metric, BLS said that construction employment increased by 196,000, or 2.4%, for the 12 months ended in December.
The industry’s jobless rate for December was 5.2 %, up from November’s 4.6%. It also was an increase from the year-earlier 4.4%
BLS jobs statistics also are adjusted for seasonal swings. Its unemployment rates are not seasonally adjusted.
Architectural, engineering and related services, which BLS categorizes separately from construction, recorded a gain of 7,400 for the month.
Construction economists' analysis
More broadly, the economy added 256,000 jobs in December, up from 212,000 in November. The overall jobless rate was 4.1%, up from November’s 3.8%
Anirban Basu, Associated Builders and Contractors chief economist, said in a statement, "The December jobs data bode well for the broader economy but poorly for the construction industry.”
Basu noted that the overall increase of 256,000 is the largest monthly gain since March. But he said, "Construction job growth, on the other hand, has clearly slowed in recent months."
For this past November, construction added an estimated 10,000 jobs, and 8,000 positions in October. Those job figures were well down from the 25,000 job gains reported in September.
Bond yields surged in the wake of the BLS report, Basu said, suggesting that the Federal Reserve may not cut interest rates during the first half of 2025.
Ken Simonson, Associated General Contractors of America chief economist, said in a statement, “While construction job gains have slowed lately, the industry is still adding workers at a stronger clip than the broader economy.” Simonson added, “Construction employment should grow faster in 2025, assuming contractors can find enough qualified workers to meet demand.”
