The construction industry added 1,000 jobs on net in October 2022, according to the Associated Builders and Contractors (ABC) analysis of data released November 4 by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has risen by 266,000 jobs, an increase of 3.6%.
The Washington, D.C.-based ABC is a national construction industry trade association representing more than 21,000 members. The mission of the ABC and its 68 Chapters is to help members develop people, win work, and deliver that work safely, ethically, and profitably for the betterment of the communities in which ABC and its members work. ABC's membership represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors.
According to ABC's November 2022 analysis, nonresidential construction employment increased by 300 positions on net, with growth in only one of the three subcategories. In addition, nonresidential building added 3,200 net new jobs, while nonresidential specialty trade and heavy and civil engineering lost 2,500 and 400 jobs, respectively.
The construction unemployment rate rose to 4.1% in October. Unemployment across all industries rose from 3.5% in September to 3.7% last month.
"For inflation to return to its 2% target, the demand for labor needs to weaken. We’re not there yet, which means that the current cycle of raising interest rates will continue."
Anirban Basu, Chief Economist, Associated Builders and Contractors, Washington, DC
“The country’s job market remains strong, and that means we remain in a bad place because, in this economic environment, good news is bad news and vice versa,” says ABC Chief Economist Anirban Basu. “We can expect to hear many such ironic statements during the months ahead. A few days ago, we learned that America had 10.7 million available, unfilled jobs in September 2022. More than 400,000 of these are construction industry job openings. [In November] we learned that employers continue to hire, with the overall economy adding 261,000 jobs in October.
“For inflation to return to its 2% target, the demand for labor needs to weaken,” says Basu. “We’re not there yet, which means that the current cycle of raising interest rates will continue. Among other things, that stands to weaken demand for construction services as borrowing costs ramp higher amid ongoing labor shortages and elevated materials prices. Due to those factors, the construction industry added just 1,000 net new jobs last month, the slowest growth since April.
“The good news is that bad news will eventually arrive,” Basu continues. “As the economy slows further and recessionary conditions take hold, inflation will dissipate as demand for goods and services weakens. While it is unfortunate that economic stakeholders have to wait for bad news before good news arrives, contractors still have healthy backlogs, according to ABC’s Construction Backlog Indicator, and that will carry many through 2023 even if a recession arrives in America next year.”
Find the ABC's report here.
