Construction Sector Employment Leads August Nonfarm Payroll Report Higher

A closer look at Friday’s nonfarm payroll report, with a focus on construction and additional analysis provided by the National Association of Home Builders (NAHB), reveals that employment in the construction sector increased by 34,000 positions in August, up from a gain of 13,000 in July.

Residential construction gained 5,600 jobs, but nonresidential construction led the way, adding 28,300 jobs.

Residential construction employment now stands at 3.4 million, broken down as 951,000 builders and 2.4 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 5,667 per month. Over the last 12 months, home builders and remodelers added 63,100 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,385,000 positions.

In August, the unemployment rate for construction workers declined to 3.9% on a seasonally adjusted basis. The unemployment rate for construction workers has remained at a relatively lower level, after reaching 15.3% in April 2020, due to the housing demand impact of the pandemic.