Construction Posts Strong Employment Numbers in June, Adding 27,000 Jobs

Strong growth for construction employment continued last month, with the U.S. Dept. of Labor reporting July 5 that the construction sector added 27,000 jobs in June, a 0.3% increase from May. The construction unemployment rate fell to 3.3%, another signal that the labor supply pressures of recent years are still ongoing.

This is well over the 20,000-per-month average monthly gain seen in the prior 12 months for the industry. Construction remains one of the standout industries for upticks in employment in the U.S., along with the health care, social assistance and government sectors, according to the Bureau of Labor Statistics. 

The 27,000 new jobs were driven primarily by nonresidential construction, with continued strong performance not only in nonresidential building construction and the heavy and civil engineering construction categories, but a steady rise in nonresidential specialty contractors, who saw 9,200 new jobs added in June alone.

Heavy and civil engineering construction saw a gain of 6,300 jobs, with non-residential building construction adding 5,700.

The continued demand for workers amid a hiring shortage is a continued source of stress for industry firms, noted Ken Simonson, chief economist for the Associated General Contractors of America. “Finding enough qualified workers remains a greater challenge for most firms than finding projects to work on.” 

The industry unemployment rate falling to 3.3%, one of the lowest ever recorded by BLS, which was highlighted by AGC as well as the Associated Builders and Contractors as a sign that a labor shortage is constraining the construction’s further growth. “The industry would have added jobs at an even faster pace if not for ongoing labor shortages,” observed Anirban Basu, ABC’s chief economist.