US Residential Construction Employment Declines in May

A closer look at Friday’s Bureau of Labor Statistics (BLS) nonfarm payroll report, with analysis from the National Association of Home Builders (NAHB), shows that overall US construction employment rose by 4,000 in May, following a downwardly revised gain of 7,000 in April. However, residential construction lost 7,400 jobs, while nonresidential construction added 11,300.

As of May, residential construction employment stood at 3.3 million, including 963,000 builders and 2.4 million residential specialty trade contractors. The six-month moving average for job gains in residential construction turned negative, with an average loss of 2,617 jobs per month. This reflects job losses in three of the past six months (January, March, and May).

Over the past year, home builders and remodelers recorded a net loss of 1,000 jobs, marking the first 12-month decline since September 2020. Since the post–Great Recession low, residential construction has added 1,360,600 jobs.

The construction unemployment rate fell to 3.8% in May on a seasonally adjusted basis. Although elevated at the height of the pandemic—peaking at 15.3% in April 2020—the rate has remained at a relatively lower level.