U.S. non-residential construction jobs dropped in July

ARLINGTON, VA. — The U.S. construction industry added 11,000 jobs between June and July, but non-residential construction employment remains far below pre-pandemic levels, according to analysis by the Associated General Contractors of America of government data released Aug. 6.

Construction employment in July in the U.S. totalled 7,421,000, a gain of 11,000 from June, following three months of job losses. However, the rebound was limited to residential and specialty trade contractors, while non-residential building and infrastructure construction firms continued to shed workers.

Residential building contractors such as homebuilders added 8,300 employees in July, while employment was unchanged among residential specialty trade contractors. The two residential segments have added a total of 58,500 employees, or 2.0 per cent, to their workforce since February 2020.

In contrast, non-residential building contractors shed 2,500 employees in July. Employment declined by 2,100 among heavy and civil engineering construction firms, the segment most involved with infrastructure. Non-residential specialty trade contractors added 7,500 employees in the month.

Following the huge loss of jobs between February and April 2020 at the beginning of the pandemic, infrastructure contractors have added back only 37 per cent of lost jobs.

Non-residential building and specialty trade contractors have each regained about 60 per cent of lost workers, while the total non-farm payroll economy has recouped 75 per cent of workers.

Association officials said non-residential construction has been affected by declining demand for projects, particularly for public infrastructure work, and urged Congress to quickly pass the new bipartisan infrastructure proposal from President Joe Biden.

“Contractors are plagued by soaring materials costs, long or uncertain delivery times, and hesitancy by project owners to commit to construction,” said Ken Simonson, the association’s chief economist, in a statement. “Recovery has been especially slow in infrastructure construction.”