The number of workers employed in the construction industry grew by 17,000 in December, up 197,000 from December 2022, or 2.5%. The Associated Builders and Contractors cited ongoing labor shortages as constraining job growth, even as wages have increased.
The number of jobs in nonresidential construction increased in December by 11,900, according to The Associated Builders and Contractors. Gains in nonresidential specialty trade and nonresidential building were offset by declines in heavy and civil engineering.
“Despite strong construction industry employment growth, today’s jobs report was highly contradictory,” said Anirban Basu, chief economist, in a statement. “On one hand, economywide payroll employment expanded faster than expected in December, and the unemployment rate remained unchanged at 3.7%, close to the lowest level in over a half a century. Construction employment increased for the ninth consecutive month, with the nonresidential segment adding jobs at a particularly rapid pace.
“On the other hand, the labor force shrank by 676,000 persons in December, the largest decline since early 2021,” said Basu. “Wage growth also accelerated, with average hourly earnings up 4.1% year over year across all industries. That’s faster than expected and a level not consistent with a return to 2% inflation. Construction industry earnings have increased at an even faster rate over the past year.
“This is only one month’s data and could contain significant statistical noise,” said Basu. “That said, the combination of faster wage growth and a smaller labor force suggests that interest rates could remain higher for longer.”
What were December construction employment numbers?
Construction employment in December totaled 8,056,000, seasonally adjusted, with a gain of 17,000 from November. The sector has added 197,000 jobs during the past 12 months, an increase of 2.5%. Residential building and specialty trade contractors added 5,500 employees in December and 40,100 (1.8%) over 12 months.
Employment at nonresidential construction firms—nonresidential building and specialty trade contractors along with heavy and civil engineering construction firms—increased by 12,400 for the month.
The unemployment rate among jobseekers with construction experience was 3.7% in December, close to the lowest level in over half a century.
