Construction Employment Falls by 11K in February
Arlington, VA – Construction
employment declined by 11,000 jobs in February, with decreases in both
residential and nonresidential segments, according to an analysis
of new government data released by the Associated General
Contractors of America. The decline follows stronger hiring in January
than previously reported and suggests contractors are becoming more
cautious about adding workers amid uncertainty about materials prices
and demand for projects.
“Contractors
may be more reluctant to add workers amid uncertainty about how much
they will pay for construction materials and demand for certain types of
construction projects,” said Macrina Wilkins, the association’s
director of market insights. “But even with the monthly drop,
construction employment has grown at a faster rate during the past year
than the broader economy.”
Construction
employment totaled 8,309,000, seasonally adjusted, in February, a loss
of 11,000 from January. Over the past 12 months, the industry has added
42,000 jobs, a gain of 0.5 percent, outpacing the 0.1 percent increase
in total nonfarm payroll employment.
The
contraction mostly occurred in residential construction. Residential
construction shed 7,100 jobs for the month, as a decline of 9,500
positions among residential specialty contractors more than offset a
gain of 2,400 jobs among residential building contractors.
Nonresidential construction employment slipped by 3,800 jobs in
February. Within that category, employment among nonresidential building
contractors increased by 4,100 positions. Nonresidential specialty
trade contractors shed 1,400 jobs. Employment in heavy and civil
engineering construction declined by 6,500 jobs for the month.
Average
hourly earnings for production and nonsupervisory employees in
construction—including most onsite craft workers and many office
staff—rose to $38.52 in February, an increase of 5.1 percent over the
past year.
Association
officials said uncertainty—about materials prices and levels of demand
for projects—likely prompted some firms to pause hiring in February.
They said federal officials could help ease that uncertainty by passing a
new surface transportation bill before the current law expires at the
end of September. They noted that the association has launched a new
national campaign, called America’s Moving Forward, to push Congress to pass a new transportation law on time.
“Congress
can send a clear signal about construction demand by passing a new
highway and transit bill before the current measure expires,” said
Jeffrey D. Shoaf, the association’s chief executive officer. “As the
single largest federal construction measure, the transportation bill is a
significant driver of construction demand across the country.”
View the construction employment data.
About The Associated General Contractors Of America
The Associated General Contractors of America (AGC) is a leading association for the construction industry. AGC represents more than 26,000 firms, including over 6,500 of America’s leading general contractors, and over 9,000 specialty-contracting firms. More than 10,500 service providers and suppliers are also associated with AGC, all through a nationwide network of chapters. To learn more, visit www.agc.org.