The Daily Dig
Construction added 11,000 jobs on net in June, according to an Associated Builders and Contractors analysis of Bureau of Labor Statistics data released July 2. Over the past year, the industry has added 64,000 jobs, a gain of 0.8%. ABC said the nonresidential segment has grown several times faster than the economywide average over the past 12 months.
Nonresidential construction employment rose by 19,900 positions in June, with gains across all three subcategories. Nonresidential specialty trades led the way, adding 14,100 net jobs. Nonresidential building added 3,200 positions, while heavy and civil engineering added 2,600.
The construction unemployment rate climbed to 4.7% in June, the highest reading for that month since 2021. National unemployment came in at 4.2%, which is 0.1 percentage point higher than a year ago. ABC Chief Economist Anirban Basu said the rise in construction joblessness reflects a more adequate labor supply rather than weaker hiring demand.
Basu noted that wage growth for nonmanagerial construction workers slowed to its weakest pace since last September. He pointed to looser labor conditions as the reason wage pressure has eased. Contractors surveyed for ABC's Construction Confidence Index continue to signal plans for ongoing hiring in the months ahead.
Snapshot:
Report Period: June (data released July 2)
Source: Associated Builders and Contractors, based on U.S. BLS data
Net Construction Jobs Added (June): 11,000
Net Construction Jobs Added (Trailing 12 Months): 64,000
Year Over Year Employment Growth: 0.8%
Nonresidential Construction Jobs Added (June): 19,900
Nonresidential Specialty Trades: +14,100
Nonresidential Building: +3,200
Heavy and Civil Engineering: +2,600
Construction Unemployment Rate (June): 4.7%
National Unemployment Rate (June): 4.2%
National Unemployment Rate, Year Over Year Change: +0.1 percentage point
Wage Trend: Slowest average hourly earnings growth for nonmanagerial construction workers since September
TheJobWalk Thoughts
Specialty trade contractors added roughly four times as many jobs as building contractors in June, and more than five times what heavy and civil engineering added. That gap shows trade firms are actively building bench strength right now. GCs who have struggled to lock in mechanical, electrical, and finish trades on tight schedules should treat that added capacity as a signal worth acting on this bid season.
A 4.7% construction unemployment rate paired with slowing wage growth is more than a data point. It signals a labor market finally loosening after several tight years, giving estimators firmer ground to trust their labor cost assumptions. Contractors who have been padding bids to hedge against wage escalation may have room to ease off that cushion on projects breaking ground later this year.
Nonresidential added 19,900 jobs in June while the overall industry added just 11,000. That gap shows exactly where hiring demand is concentrated right now. Paired with contractors telling ABC they plan to keep hiring, it points to real, sustained momentum on the commercial, industrial, and infrastructure side. That is a tailwind sales and business development teams targeting nonresidential work can act on with confidence.
