Nonresidential Builders Boosted Hiring by 18K Positions in April

Meanwhile, builders and specialty trade contractors working in the residential sector collectively shed an estimated 10,400 positions during April, with specialty firms cutting the lion’s share of that figure with an estimated 8,900 job cuts. 

Heavy and civil engineering construction contractors collectively reported an estimated gain of 800 jobs.

“Construction employment expanded modestly in April, but that’s largely due to weakness on the residential side of the industry,” Anirban Basu, chief economist with Associated Builders and Contractors of America, said in a press release.

While noting the nonresidential construction sector’s steadily rising employment over the past year, Basu said, “This strength can be traced to surging data center construction spending, which is up 34% over the past year. It also helps explain why ABC member expectations for hiring remain elevated, according to ABC’s Construction Confidence Index, despite tepid industrywide job growth.”

While also noting continuing demand for data center projects, Macrina Wilkins, director of market insights with Associated General Contractors of America, commented that “construction firms are paying a growing premium to attract enough people to be able to complete data centers and other projects.”

“Data center construction is one of the main reasons the construction industry continues to add jobs and boost wages faster than the overall economy,” added Jeffrey D. Shoaf, CEO of AGC of America. “The more communities do to restrict construction of data centers, the more likely future construction growth will be dampened or even decline.”