Fueled by new heavy and civil engineering construction projects, the national construction industry in August saw the addition of 22,000 new jobs.
In figures just released by the Bureau of Labor Statistics it was noted that more than 2,400 new jobs were realized in the residential construction sector over the month previous.
Overall, the construction industry now has a workforce of just under 8 million people, an increase of 2.7% over where things stood in August of 2022.
Sectors showing particularly vibrant growth included residential and specialty trade contractors, up by 1.3% over last summer.
Construction spending, meanwhile, posted a gain of 5.5% over July of last year, for an overall total of just under $2 trillion. But while private residential spending was up by a marginal 0.5%, other sectors posted losses, including highway and street construction, off by 0.6%, transportation, down by nearly 1%, and sewerage and waste disposal project spending, getting hit with a 1.2% decline.
In a statement, Stephen Sandherr, chief executive officer of the Associated General Contractors of America, blamed the decline in public spending on what has been called the plodding nature of Washington project approval.
“It appears that the Biden administration can’t decide if it wants projects to get built or prefers to suffocate them with red tape,” said Sandherr.
The industry leader added: “At some point, people are going to begin wondering what happened to all those projects the administration promised would be built.”
Overall, more than 187,000 new jobs were added in August in all employment sectors, according to the BLS, a distinct improvement over the 105,000 added in June, and 157,000 added in July.
The health care sector saw a gain of 71,000 in August, followed by leisure and hospitality employment, up by 40,000 new workers.
Notes the BLS report: “Employment in social assistance increased by 26,000 in August, in line with the prior 12-months average gain.”
For all of the individual sector gains, the nation’s unemployment rate was up to 3.8% in August, a marginal increase over the 3.7% recorded a year ago. The latest unemployment figures are a substantial improvement over August of 2020, when the nation was enduring a pandemic lockdown and the jobless rate stood at 8.4%.
In a statement, Acting Labor Department Secretary Julie Su said the August figures reflect a “strong and steady growth as we return to normal following the breakneck pace of our rapid recovery.”
New Mexico Senator Martin Heinrich, chairman of the Congressional Joint Economic Committee, remarked in a statement delivered from his office that the latest job numbers “Provide a clear indication that the labor market is beginning to cool.”
“The Federal Reserve should take note of this signal,” suggested Heinrich, “and decline to impose another rate hike this month.”
By Garry Boulard
