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Thursday, September 16, 2021

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CONSTRUCTION EMPLOYMENT UNCHANGED IN APRIL, SAYS ABC

May 13, 2021
1650

WASHINGTON—Construction industry employment remained unchanged in April,
according to an Associated Builders and Contractors analysis of data released
today by the U.S. Bureau of Labor Statistics. Over the last year, the industry
has added 917,000 jobs, recovering 82.4% of the jobs lost during the first
months of the COVID-19 pandemic.

Nonresidential construction lost 2,900 jobs in April, driven entirely by losses
among nonresidential specialty trade contractors (-11,800). This decline was
offset by gains in heavy and civil engineering (+6,300) and nonresidential
building (+2,600).

The construction unemployment rate fell from 8.6% in March to 7.7% in April.
Unemployment across all industries inched a tenth of a percentage point higher
to 6.1%.

“While many observers are shocked by today’s disappointing employment report,
contractors and other employers have been signaling for weeks that all is not
right in America’s labor market,” said ABC Chief Economist Anirban Basu. “In
particular, a growing chorus of employers indicates difficulty filling available
job openings. Demand for human capital is elevated in many industries, but a
combination of stimulus payments, stepped up unemployment insurance benefits,
lingering fear of infection and remote schooling is slowing growth in labor
force participation.

“There are problematic supply side factors as well,” said Basu. “Input shortages
ranging from softwood lumber and steel to copper and semiconductors have pushed
materials costs higher while simultaneously slowing down the ramping of
production. Not coincidentally, despite elevated demand for vehicles, employment
in the motor vehicles and parts manufacturing segment declined 27,000 in April.

“Based on ABC’s Construction Confidence Index, the typical contractor expects
sales, staffing and margins to expand over the next six months,” said Basu. “As
vaccination rates increase and infection rates turn lower, accumulated household
savings combined with more effective supply chains should translate into
improving economic performance. That in turn will help lift demand for
construction services later this year and into 2022.”

 * TAGS
 * ABC
 * Associated Builders and Contractors
 * construction employment
 * COVID-19

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