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Construction Employment Slows07-21-15 | News

Construction Employment Slows

Residential builders shed 6,100 jobs in June, while nonresidential construction firms grew by 4,500 workers in the month.

Construction employment appeared to be gaining momentum in the first half of the year, portending solid building activity in the second half of 2015.

But it has slowed to a crawl recently.

Some areas of the construction industry gained jobs, while others saw their numbers drop. The end result is a relatively flat June overall, compared to the previous month, according to the Associated Builders and Contractors.

"One possible reason for this performance may be that construction firms simply can't find additional workers," said Anirban Basu, chief economist for the ABC.

"The construction unemployment rate fell four-tenths of a percentage point to 6.3 percent in June," Basu said. "Part of this is attributable to the fact that the U.S. labor force participation rate hasn't been this low since Jimmy Carter occupied the White House."

Citing a July 2 Bureau of Labor Statistics report, Basu said:

• Residential builders lost 6,100 jobs in June, but gained 29,600 jobs, or 4.5 percent, compared to the same month in   2014.
• Nonresidential construction gained 4,500 jobs for the month, and 24,900 jobs, or 3.6 percent, year-to-year.
• Residential specialty contractors added 3,700 jobs for the month, and 97,400 jobs, or 5.9 percent, on an annual basis.
• Nonresidential specialty contractors lost 5,600 jobs in June, but this segment is up 76,500 jobs, or 3.5 percent,
  year-to-year.
• Heavy construction and civil engineering firms added 3,800 jobs for the month, and 30,400 positions, or 3.3 percent,   since June 2014.