Construction industry unemployment edged down to 17 percent in August from 17.3 percent in the previous month, according to a Sept. 3 employment report by the Department of Labor. However, the nonresidential construction industry shed another 200 jobs last month, bringing the total job loss over the past year to 31,900, or 7.4 percent.
In contrast to the overall job loss in the nonresidential industry, two nonresidential sectors posted significant increases for the month. Heavy and civil engineering construction gained 10,600 jobs for the month and specialty trade contractors gained 18,200 jobs for the month. Despite the gains, both sectors are still below employment numbers in August 2009.
“Financial markets began rebounding immediately upon the release of today’s data,” said ABC Chief Economist Anirban Basu. “In addition, the nation’s construction sector added jobs, with the most significant growth recorded among nonresidential specialty trade contractor. For two key segments, monthly job performance has not been this good since 2007.”
The overall construction industry gained 19,000 jobs in August, ending three months of declines in employment. Year-over-year, the construction industry has lost 4.7 percent of total employment. The residential construction sector lost 2,600 jobs in August and has lost 7.4 percent of available employment over the past 12 months.
Total employment across all industries shrank by 54,000 jobs, the third straight monthly decline. Compared to August 2009, national employment is up 0.2 percent or 229,000 jobs. The national unemployment rate is 9.6 percent with 14.9 million out of work.
“Many economists had predicted that the nation would shed more than 100,000 jobs in August,” said Basu. “Viewed in its entirety, today’s employment report represent the notion that the anticipated slowing in U.S. economic activity will be gradual. Unlike the aftermath of the financial collapse of September 2008, business owners and managers should anticipate steady and moderate deterioration in economic conditions going forward as opposed to a sharp decline in activity. Whether or not the economy will fall into recession next year remains far from clear, but the probability that further slowing will occur remains high.”
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