Sep. 5, 2008 at 9:37am

Commercial construction jobs grow, for now

Going against the tide of the nation's rising unemployment rate, the nonresidential construction sector gained 2,900 jobs in August, according to the U.S. Labor Department. But that won't likely last.

"While there has been small job growth in July and August, we anticipate that there will be nonresidential construction job losses in the remaining months of 2008 and into 2009," said Anirban Basu, Associated Builders and Contractors chief economist. "One of the construction industry's key leading indicators, the architectural billings index, though up slightly last month, still remains below levels achieved earlier in the decade indicating a substantial slowing in nonresidential construction starts."

The figures are on a seasonally-adjusted basis. In July, the nation's nonresidential construction sector saw an increase of 4,400 jobs. In contrast, the residential construction industry continues to lose jobs. In August, residential construction shed another 4,400 jobs and has now lost 111,100 jobs over the past year.

Total construction employment in August 2008 was 437,000 lower than in August 2007, a decline of 5.7 percent. On a monthly basis, total construction employment fell by 8,000 jobs in August.

Overall, the national unemployment rate in August shot up to 6.1 percent as employers cut 84,000 jobs. This is the highest rate since late 2003.

Posted in BE Daily, Building, Law and Legislation by Steve Dunkelberger | Email Steve

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