The construction industry added 23,000 jobs on net in February, according to an Associated Builders & Contractors (ABC) analysis of U.S. Bureau of Labor Statistics data.
On a year-over-year basis, industry employment has expanded by 215,000 jobs, an increase of 2.7 percent.
Nonresidential construction employment grew by 24,200 positions, with growth in all three subcategories. Heavy and civil engineering gained the most jobs, increasing by 12,500 positions. Nonresidential specialty trade and nonresidential building added 7,400 and 4,300 jobs, respectively.
The construction unemployment rate rose to 7.0 percent in February. Unemployment across all industries increased from 3.7 percent in January to 3.9 percent last month.
“In February, we saw evidence that contractors continue to add workers, fulfilling expectations,” says Anirban Basu, ABC chief economist. “Employment growth happened in a variety of nonresidential subsegments, which is quite remarkable given headwinds such as high project financing costs, elevated construction service delivery costs and lingering recessionary fears.”
Basu adds that the February jobs report and ABC’s Construction Confidence Index both indicate continued momentum in the industry. There remain reasons for concern, however.
“Contractors whose clients are project owners who rely on the availability of private financing have been reporting higher numbers of project delays,” Basu says. “ABC’s Construction Backlog Indicator declined last month, indicating that, while the industry continues to expand, a growing fraction of nonresidential contractors may be feeling the effects of a still-restrictive monetary environment.”