US Construction Sector Employment Growth Slows in January

A closer look at the Bureau of Labor Statistics (BLS) January nonfarm payroll report, with additional analysis provided by the National Association of Home Builders (NAHB), reveals that overall employment in the construction sector increased by 4,000 in January, down from a 13,000 increase in December.

Residential construction lost 200 jobs, while nonresidential construction added 4,000 jobs.

Residential construction employment now stands at 3.4 million, broken down as 956,000 builders and 2.4 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 1,350 a month. Over the last 12 months, home builders and remodelers added 40,100 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,376,600 positions.

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.