Construction employment improved by 16,000 jobs in August, according to an analysis of government data by the Associated General Contractors of America (AGC).
However, the employment gains varied by segment.
Residential construction employment increased by 27,700 jobs, covering residential specialty trade contractors (24,500) and residential building (3,200).
Inversely, nonresidential construction employment decreased by 11,000 jobs in August, comprised of nonresidential building (up 10,200 jobs), specialty trades (down 15,700 jobs), and heavy and civil engineering construction (down 5,500 jobs).
“Construction is becoming a tale of two sectors, as homebuilding and limited nonresidential niches thrive but most other private, as well as public, construction shrinks,” says Ken Simonson, chief economist at AGC. “These employment numbers are in line with our survey, which found a plurality of construction firms expect it will take more than six months before their volume of business matches year-ago levels.”
The construction industry’s unemployment rate in August was 7.6 percent, with 762,000 former construction workers unemployed. According to AGC, these figures are more than double the August 2019 report of 3.6 percent and 361,000 workers, respectively.
AGC officials continue to urge both Congress and the administration to enact economic recovery measures to aid the construction industry.
“It is clear that the commercial construction industry will not begin to recover unless Washington can enact responsible new recovery measures,” says Stephen Sandherr, CEO of AGC. “Congress and the administration should take the opportunity to create needed new middle-class jobs, rebuild infrastructure and restore the economy.”