Texas Construction News staff writer
WASHINGTON — The U.S. construction industry added a net 15,000 jobs in June, marking the second consecutive month of growth, according to a July 3 analysis of federal data by the Associated Builders and Contractors (ABC).
The nonresidential sector led the gains, adding 9,200 positions. This growth was driven entirely by nonresidential specialty trade contractors, which added 12,400 jobs, while heavy/civil engineering and nonresidential building lost 2,800 and 400 jobs, respectively.
The national construction unemployment rate fell to 3.4% last month.
Despite the positive employment report, ABC Chief Economist Anirban Basu issued a warning regarding borrowing costs.
“While many will cheer this jobs report, some construction firm leaders may not be among that group,” said Basu. “While abating fears of recession are comforting, these data effectively slammed the door shut on a July Federal Reserve interest rate cut. A growing fraction of contractors is experiencing weakness in backlog as projects are postponed in an uncertain economic environment coupled with stubbornly elevated borrowing costs.”1
