Although unexpected events have rocked the start of this year, the tide is turning positive in our economy. A look at the reports coming out of the construction industry shows us one of these positives. Here’s a breakdown of what the data really means.
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Looking at the Numbers

An Associated Builders and Contractors analysis from the U.S. Bureau of Labor Statistics revealed that the construction industry added 158,000 net jobs in June alone. The overall unemployment rate for the construction industry rose by 10.1% in the same month, and even though the rate is down from May and April rates of this year, it’s still up 6.1 percentage points compared to June of last year.
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Plus, over the last two months, the construction industry added close to 600,000 jobs, which marks an encouraging recovery of 56% of the industry-wide jobs eliminated since the beginning of the COVID-19 pandemic.
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On top of that:
  • Employment for nonresidential construction gained 74,700 net jobs in June.
  • The greatest growth was for nonresidential specialty trade contractors, where 71,300 jobs were added.
  • The nonresidential building segment’s employment also increased with 13,100 jobs.

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Looking to the Past

In the years leading up to this point, we’ve seen a major shift in the construction industry. Even as the industry’s unemployment rate has been falling since 2010, a report from the June Bureau of Labor Statistics report states that the number of employees in the construction field has also diminished as a whole.
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Why? Because workers have been leaving for other fields since 2007, a majority of this trend stemming from the housing market crash and subsequent stalling of new construction over the last three years.
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Looking to the Future

The job growth in the construction industry has undone more than half of March and April’s decline. What does this mean moving forward?
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In the words of Anirban Basu, Chief Economist for ABC, “most economists have been predicting a V-shaped recovery [since the pandemic devastated the economy]. To date, this has proven correct. While recovery is likely to become more erratic during the months ahead due to a number of factors, including the re-emergence of rapid COVID-19 spread, recent employment, unemployment, residential building permits, and retail sales data all highlight the potential of the U.S. economy to experience a rapid rebound in economic activity as 2021 approaches.”
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And Secretary of Labor Eugene Scalia stated that today’s job report pointed to the economy’s resiliency as more people return to work at a faster rate than forecasted. “It is heartening to see employment gains across nearly all demographics. The report reflects that we can return millions more Americans to work in the weeks ahead, provided we bear in mind that economic recovery must go hand-in-hand with safe practices and self-discipline.”
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The reports coming out of the construction industry point to an encouraging economic recovery. And with the abundance of new jobs and safety procedures put in place, many Americans can look forward to going back to work and enjoying a more normal life once again.
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