The not seasonally adjusted national construction unemployment rate dropped 2.6% in September 2021 from a year ago while 49 states had lower unemployment rates over the same period, according to state-by-state analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors. Only one state, Alaska, had a higher estimated rate than it did in September 2020.
National nonresidential construction spending contracted 0.6% in September, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $791.2 billion for the month.
Investment in nonresidential structures contracted at an annual rate of 7.3% during the third quarter of 2021 and has now contracted during seven of the past eight quarters, according to an Associated Builders and Contractors (ABC) analysis of data released by the U.S. Bureau of Economic Analysis.
Associated Builders and Contractors is calling attention to a new report that highlights the negative economic impact of controversial government-mandated project labor agreements on nonunion construction workers, who comprise 87.3% of the construction industry workforce.
“In addition to ongoing, global supply chain disruptions, which in many instances are worsening, transportation costs are surging due to rising fuel prices and insufficient capacity. This will put additional upward pressure on input prices which could cut contractor profit margins,” said ABC Chief Economist Anirban Basu.
“Nonresidential construction backlog declined for a second consecutive month as skills and input shortages hammer the industry,” said ABC Chief Economist Anirban Basu.
The construction industry added 22,000 jobs on net in September. Overall, the industry has recovered 912,000 (81.9%) of the jobs lost during earlier stages of the pandemic.
Among those not in the labor force in September, 1.6 million persons were prevented from looking for work due to the pandemic. Employment in construction is 201,000 below its February 2020 level.
Jim Kowalski is owner and vice president of Kowalski Construction Inc. He is also president of the Restoration Affiliates board. Here, he shares secrets to success and lessons learned in growing his third-generation, family-run property restoration company. He also explains what Restoration Affiliates is.
