new housing construction proves bright spot in national building picture

New construction job gains recorded in July were overwhelmingly related to the housing sector, says a new analysis published by the Associated General Contractors of America.

Altogether, some 20,000 new construction jobs were recorded in July, while at the same time the nonresidential and infrastructure building sectors saw a loss of 4,000 jobs.

In a statement, Ken Simonson, chief economist for the AGC, said that while it was gratifying to see residential building employment increasing, other areas of the industry present a troubling picture.

“It is likely that many nonresidential jobs are in jeopardy following the completion of emergency projects and ones begun before the pandemic,” he said.

Simonson added: “Projects that had been scheduled to start this summer or later are being canceled by both public agencies and private owners, while few new facilities are breaking ground.”

July’s 20,000 gain in construction jobs follows a much more impressive increase of 163,000 jobs in June, and an even larger 446,000 jobs the month before.

In a posting for the National Association of Home Builders, Robert Dietz, the groups’ chief economist, noted that “the job openings rate is likely to experience choppiness in the months ahead given the divergent paths within the construction industry.”
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Continued Dietz: “Home building and remodeling are relative bright spots for the overall economy, while nonresidential construction will experience a period of weakness.”

By Garry Boulard

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