Associated Builders and Contractors Sees Additional Job Growth Potential in Nonresidential Construction in 2024

On Friday, the Associated Builders and Contractors (ABC) reviewed the Bureau of Labor Statistics (BLS) nonfarm payroll report for April.

The construction industry only added a net 9,000 jobs in April. On a year-over-year basis, industry employment had increased 3.2%, or 258,000.

ABC noted that nonresidential construction employment increased by 7,800 positions on net, with growth registered in all three major subcategories. Nonresidential specialty trade added the most jobs, growing by 6,600 positions. Nonresidential building and heavy and civil engineering added 900 and 300 jobs, respectively.

ABC also pointed out that construction sector unemployment declined to 5.2% in April, while unemployment across all industries rose from 3.8% in March to 3.9% in April.

Adding background and his analysis to the report, ABC Chief Economist Anirban Basu said:

“It is really quite remarkable that the nation’s nonresidential construction sector continues to add jobs so consistently in an environment characterized by elevated project financing costs. At the heart of growing demand for construction workers in America is the prevalence of megaprojects in many parts of the country, including major manufacturing plants, data centers, and public works.

Based on ABC’s Construction Confidence Index, there is more hiring to come. While there is observable weakness in certain industry segments, particularly in the challenging office market, ongoing spending growth in other construction segments has thus far more than fully countervailed that softness. Many megaprojects are just now beginning construction, strongly suggesting a stable US nonresidential construction labor market for months to come. Such considerations are also consistent with relatively rapid increases in construction worker compensation during the balance of 2024.”