AGC Reports 1,000 Construction Jobs Added in August

Construction employers added 1,000 jobs in August while the industry’s unemployment rate fell to 11.3 percent, according to an analysis of new federal data released by the Associated General Contractors of America. The unemployment declines come as the construction industry continues to shrink, association officials noted, adding that over 214,000 workers have left the industry since August 2011.

The construction employment gains for the past month and past year have largely come from the residential sector. The residential construction sector added 7,100 jobs between July and August and 23,900 jobs since August 2011. Residential building contractors actually lost 1,000 jobs in August, but have gained 5,200 for the year. Meanwhile, residential specialty trade contractors added 8,200 jobs in August and 18,700 for the year.

Nonresidential construction employment declined by 6,000 in August and is down by 6,400 for the year, noted Stephen E. Sandherr, the association’s chief executive officer. He said that the heavy and civil engineering construction sector, buoyed by the passage earlier this year of a new federal transportation bill, added 2,800 jobs between July and August and 17,400 since August 2011. However, nonresidential specialty trade contractors lost 6,400 jobs for the month and 18,900 for the year. And nonresidential building contractors lost 2,400 jobs in August and 4,900 since August 2011.

Sandherr said construction employment remained stagnant as private sector demand remained relatively weak and overall public sector investments in construction and infrastructure continued to decline. He added that those declining infrastructure investments weren’t just hurting construction employment, but were also responsible in part for the fourth annual decline in America’s global competitiveness ranking.