Construction Jobs Declined in October as Residential Contractors Shed 16.4K Workers

Firms focused on nonresidential construction kept hiring, though, with building contractors adding 2,900 positions, heavy/civil engineering companies boosting employment by 2,500 jobs and nonresidential specialty trade contractors hiring an additional 7,900 workers, according to BLS.

Noting that the job losses were again confined to the residential sector, Anirban Basu, chief economist with Associated Builders and Contractors, said, “Nonresidential construction employment, buoyed by the ongoing data center boom, expanded yet again and has grown more than twice as fast as economywide employment over the past year.

“Nonresidential payrolls should continue to expand in the coming months,” Basu added, noting ABC’s Construction Confidence Index indicates that nearly 50% of contractors expect to increase staffing levels over the next six months.

“Nonresidential contractors are adding employees and raising hourly pay at rates far exceeding the broader economy,” commented Ken Simonson, chief economist with Associated General Contractors of America. “But continuing those gains will be difficult unless they have a chance to bring in workers with appropriate experience and training.”

AGC officials urged policy makers to create a pathway for contractors to hire more essential workers and to ensure funding for highway and transit improvements

“Contractors are eager to hire more workers,” said Jeffrey D. Shoaf, AGC’s chief executive officer. “That requires policy makers to expand training opportunities, pursue sensible immigration reforms and keep funds flowing to support expansion and modernization of highways and transit systems.”