Construction employment stagnates
The construction industry added 5,000 jobs in April, and the sector’s unemployment rate fell slightly to 17.8 percent, according to an analysis of new federal employment data by two independent trade groups.
Associated Builders and Contractors Inc. (ABC) said the construction industry has lost 42,000 jobs, or 0.8 percent, in the past year. The Associated General Contractors of America (AGC) said the federal data reflect a yearlong trend of little change in construction employment after years of steep declines.
Overall, the nation added 244,000 jobs in April, including 268,000 in the private sector. The government shed 24,000 jobs. On a year-over-year basis, the number of U.S. jobs grew by slightly more than 1.3 million, or 1 percent.
Both organizations acknowledged the positive economic indicators and a slowdown in construction layoffs, but said there are no clear signals of improvement.
“The construction industry may have stopped bleeding jobs, but there is no sign that employment levels are set to bounce back,” said Ken Simonson, AGC’s chief economist. “With declines in public-sector investments likely to offset increases in some private- sector construction activity, we are unlikely to see significant increases in construction employment for the foreseeable future.”
ABC Chief Economist Anirban Basu said the nation added more overall private-sector jobs in April than in any month since February 2006. He also noted that nonresidential building construction employment was down in April by 18,400 jobs, or 3.2 percent, from a year earlier.
The U.S. unemployment rate stands at 9 percent.