Alabama Construction News

JUL-SEP 2017

Alabama Construction News is the states only bimonthly magazine dedicated to the commercial construction industry.

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U.S. Labor Market Resurgent in June; Construction Adds 16,000 Jobs National construction employment added 16,000 net new jobs on a seasonally adjusted basis in June, according to an analysis of data from the U.S. Bureau of Labor Statistics by Associated Builders and Contractors (ABC). Overall construction employment expanded 3.1 percent on a year-over-year basis, easily outpacing the year-over-year growth rate of 1.6 percent for all nonfarm industries. The nonresidential construction sector added 10,300 net new jobs in June after adding 4,900 in May (revised upward from 4,400 jobs), while the residential sector added 6,000 net jobs for the month. The construction industry unemployment rate, which fell 1 percentage point in May, declined further in June and now stands at just 4.5 percent. Construction unemployment tends to decline in the summer. However, the decline in unemployment is still significant because industry unemployment now stands near lows achieved in 2006. BUILDING ALABAMA | INDUSTRY OUTLOOK & TRENDS "This jobs report is just what the doctor ordered," said ABC Chief Economist Anirban Basu. "June's employment gains impressed along every dimension. In addition to a robust headline of 222,000 jobs created, the labor force participation rate ticked higher to 62.8 percent from 62.7 percent and the employment-to-population ratio edged higher to 60.1 percent from 60.0 percent. While the labor force participation rate is only a bit higher than it was a year ago, the employment-to-population ratio is up 0.5 percent. Idleness has been on the decline in America, at least based upon the latter measure. "Construction job growth represents an important part of the story. The majority of construction job gains in June were in nonresidential construction, though performance within the nonresidential building and heavy/civil engineering segments was subdued. Within nonresidential construction, nonresidential specialty trade contractors represented more than 100 percent of job gains," continued Basu. "Prior to June, the nation had failed to add 200,000 or more jobs in five of eight months. June was a welcome respite from an emerging trend of softening job growth. However, the acceleration in job creation may not last. Job gains in June were likely aided by high school and post-secondary graduations, resulting in a surge in new job seekers and more opportunities to fill available job openings. America continues to face structural shortfalls in skilled human capital, something that construction industry leaders know all too well." Residential Building Construction and Specialty Trade Contractors Nonresidential Building Construction and Specialty Trade Contractors CONSTRUCTION EMPLOYMENT GROWTH: RESIDENTIAL VS. NONRESIDENTIAL June 2007 – June 2017 Source: Bureau of Labor Statistics 2007 2017 2009 2011 2008 2010 2012 2014 2016 2013 2015 0 1,500 3,500 500 2,000 4,000 1,000 3,000 2,500 Employment (seasonally adjusted, thousands) 17 JUL-SEP 2017 AL CONSTRUCTION NEWS

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