Construction Jobs Lost in June; Spending Down in May

More than 43,000 construction-related jobs were lost in June over May 2008 figures, as employers adjust to a slowing economy.

More than 43,000 construction jobs were lost in June, according to a report by the U.S. Department of Labor. The unemployment rate for June remained at 5.5 percent. In addition to construction, employment continued to fall in manufacturing, and employment services, while health care and mining added jobs.

The number of unemployed persons was essentially unchanged in June, at 8.5 million, and the unemployment rate held at 5.5 percent. A year earlier, the number of unemployed persons was seven million, and the jobless rate was 4.6 percent.

Construction employment numbers were down across the board in June, with the heaviest totals in the “specialty trade contractors” category. When adjusting the totals seasonally, there are 25,000 fewer specialty trade contractors’ jobs than in May 2008.

A separate report released by the Commerce Department shows a drop in overall construction spending in May, due primarily to reduced spending on private construction projects.

Spending on private construction was at a seasonally adjusted annual rate of $784.2 billion, slightly below the revised April estimate of $789.4 billion. Private nonresidential construction in May was at $405.3 billion, which is slightly above April 2008 figures.

Private residential construction for May was at $1.48 billion, down 27.4 percent from May 2007. The only other private sector that was down in May was construction spending on religious institutions; this sector was down 8.3 percent. Construction on power plants, lodging, manufacturing and amusement and recreation projects all recorded double-digit gains.

The estimated seasonally adjusted annual rate of public construction spending was $301.1 billion in May, a 0.4 percent increase over April 2008. Office projects led the way in May with a 37.4 percent increase, representing $4.02 billion spent. Public safety and transportation also recorded strong gains in May, while spending on commercial projects was down 12.7 percent.