Construction Sector Job Gains Slow in March

A closer look at the Bureau of Labor Statistics (BLS) nonfarm payroll report for March, released on Friday (4-7-23), with a focus on the construction sector and additional analysis provided by the National Association of Home Builders (NAHB), reveals that both residential and non-residential employment totaled 7.9 million and exceeds its February 2020 level.

In March, employment in the overall construction sector declined by 9,000, following 12,000 jobs gained in February. Residential construction lost 7,000 jobs, while non-residential construction employment fell by 1,800 jobs in March.

Residential construction employment in March was at 3.2 million, broken down as 934,000 builders and 2.3 million residential specialty trade contractors. The 6-month moving average of jobs gains for residential construction was 700 a month, reflecting three monthly job losses that occurred in November 2022, January, and March. Over the past year, home builders and remodelers added 46,300 on a net basis. Since the low point following the Great Recession, residential construction has gained 1,263,100 positions.

The unemployment rate for construction workers declined 0.5% in March to 4.4% on a seasonally adjusted basis. The NAHB notes that the unemployment rate for construction works has been trending lower after reaching 14.2% in April 2020 due to increased housing demand, the result of the COVID-19 pandemic.