Although the national construction industry has added more than 875,000 new jobs since the worst days of the pandemic a year ago, it still saw a loss of 7,000 jobs last month.
According to a new report issued by the Associated Builders and Contractors, the real drag on construction jobs is coming out of the nonresidential sector which saw a decline of 22,600 positions in June. Nonresidential specialty trade contractors comprised the majority of that loss, accounting for a decline of 14,800 jobs, followed by the heavy and civil engineering sector, which was off by 10,900 jobs. In a statement, Anirban Basu, chief economist with the ABC, said, “Contractors and other economic stakeholders should be concerned by ongoing labor market dysfunctions, including an inordinate level of difficulty finding workers, elevated numbers of people quitting their jobs, and rising wages.” Comparing where the industry is today to the beginning of the pandemic a year ago, the latest Bureau of Labor Statistics numbers show nonresidential building employment up by 45,000; heavy and civil engineering with an increase of 18,900; and residential building up by 193,700. The most recent leveling off of wage growth, continued Basu, may be attributable to “disproportionate numbers of entry-level workers” returning to work now that enhanced unemployment benefits in some states have expired. “The entry of these workers in large numbers would tend to suppress average wage measures,” Banu continued, adding, “Most contractors are likely continuing to experience substantial upward wage pressure.” By Garry Boulard
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