Construction Employment Growth Anemic in July

The construction industry added 2,000 jobs on net in July, according to an Associated Builders and Contractors analysis of data released Friday by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 96,000 jobs, or 1.2%. 

Nonresidential construction employment increased by 6,400 positions on net, with growth in 2 of the 3 subcategories. Heavy and civil engineering added 6,000 jobs, while nonresidential specialty trade added 1,900 new positions. Nonresidential building lost 1,500 jobs for the month.

The construction unemployment rate remained unchanged at 3.4% in July. Unemployment across all industries rose from 4.1% in June to 4.2% last month.

“The construction industry has added just 7,000 jobs over the past four months,” said ABC Chief Economist Anirban Basu. “Industrywide employment is up only 1.2% over the past year, a lackluster pace of growth that historically is seen during and immediately following recessions. The good news for ABC members is that the nonresidential segment continues to outperform, growing at twice the pace of the industry at large over the past 12 months. Given that ABC member backlog remains healthy and hiring expectations remain relatively optimistic, according to ABC’s Construction Backlog Indicator, it’s possible that weakness will be confined to the residential side of the industry during the second half of 2025.”