Construction employment added 20,000 jobs on net in November, according to www.abc.org. On a year-over-year basis, the industry has expanded by 248,000 jobs—an increase of 3.3%.
The construction unemployment rate fell from 4.1% in October to 3.9% in November. The national unemployment rate for all industries was unchanged at 3.7% in November as the U.S. economy added 263,000 jobs.
Nonresidential construction added 16,300 jobs in November, with all three subsectors showing growth. Nonresidential building added 8,200 jobs; heavy and civil engineering added 5,300 jobs; and nonresidential specialty trade contractors added 2,800 jobs.
“Today’s employment report will be celebrated by many, including job seekers and other labor market participants,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Despite some recent high-profile layoffs, employers continue to hire aggressively and are increasing compensation in an effort to retain employees in the context of the ‘great resignation.’”
However, Basu said not everyone is encouraged by the jobs data.
“Normally, such dynamics would be celebrated by all,” Basu said. “However, for those who want inflation to abate, interest rates to fall and markets to be less volatile, the November jobs report is rather bad news. Those operating in real estate and construction are likely to be discouraged, as these segments are heavily influenced by interest rates, and rising borrowing costs make it more difficult to finance the next generation of construction projects.
“Moreover, while some will claim that this jobs report makes it less likely that recession is coming next year, the reality is quite the opposite,” Basu continued. “The Federal Reserve will be forced to push interest rates higher for longer, and that makes a downturn more probable over the next 12 months.”