US Nonresidential Construction Employment Climbs in September

A closer look at the Bureau of Labor Statistics (BLS) September nonfarm payroll report, with analysis from Associated Builders and Contractors (ABC), shows that nonresidential construction employment increased by 16,100 jobs.

All three nonresidential subcategories posted gains. Nonresidential specialty trade contractors added 12,300 jobs, while heavy and civil engineering added 2,600, and nonresidential building added 1,200.

The construction unemployment rate was 3.5% in September. Unemployment across all industries increased to 4.2% but remained 0.2 percentage points lower than a year earlier.

Commenting on the report, ABC Chief Economist Anirban Basu said:

“The construction industry added jobs for the seventh straight month in September. Industry employment growth is increasingly concentrated on the nonresidential side as the data center boom continues to support rapid hiring of certain specialty trade contractors.

At the same time, the residential segment continues to hemorrhage workers, and that side of the industry has now shed 1.0% of its employment base over the past year. Contractor hiring expectations remain elevated, according to ABC’s Construction Confidence Index, an outlook that seems justified given the insatiable demand for new data centers.”