Nonresidential construction shed 5,900 jobs in July, slowing slightly compared to the 6,200 average monthly job loss during the previous three months, according to the Aug. 7 employment report by the U.S. Department of Labor. On a year-over-year basis, nonresidential building construction lost 99,800 jobs (12.1 percent) to reach 727,800.
Construction lost more jobs than any other major segment of the U.S. economy in July. Contributing to the decline was heavy and civil engineering construction which posted a loss of 10,100 jobs for the month bringing the total to 120,700 jobs lost for the year, and the nonresidential specialty trade segment which lost 32,900 jobs in July and 365,600 since 2008.
“Many nonresidential construction activities tend to lag behind broader economic cycles, including commercial/office construction,” said ABC Chief Economist Anirban Basu. “However, the impacts of the stimulus package passed in February should become significantly clearer during the next six to 12 months, and this will help nonresidential construction employment stabilize during that period.”
In addition, residential building construction lost 11,200 jobs in July and 144,500 on a year-over-year basis while total private construction saw a loss of 76,000 jobs for the month and 1,053,000 since July 2008.
Overall, the nation experienced the smallest monthly decline since August 2008 – losing 247,000 jobs in July – but is still down by 5,740,000 jobs (4.2 percent) on a year-over-year basis. The unemployment rate dropped from 9.5 percent in June to 9.4 percent in July, an indication that labor market stabilization continues.
“National job loss was slower than expected and employment estimates for prior months were revised up slightly, which is being taken as another sign by economists that the labor market and overall economy are on the mend,” said Basu.
“The unemployment rate also declined slightly, which undoubtedly will be viewed by the media as being incredibly important, though this is more likely the result of seasonal factors and statistical impacts that are difficult to adjust for,” Basu added.
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