The Blog

The construction industry added 10,000 jobs on net in November, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has risen by 211,000 jobs, an increase of 2.6%.

Nonresidential construction employment increased by 6,800 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs on net, with employment in the category increasing by 7,000 positions. Heavy and civil engineering added 1,500 jobs, while nonresidential building lost 1,700 jobs last month.

The construction unemployment rate rose to 4.6% in November. Unemployment across all industries rose to 4.2% from 4.1% in October.

“While the construction industry added just 10,000 jobs in November, industrywide employment growth has still significantly outpaced the broader economy over the past year,” said ABC Chief Economist Anirban Basu. “More importantly, economywide job gains rebounded in November, confirming October’s paltry job growth was indeed a result of hurricanes Helene and Milton.

“The combination of relatively cool payroll employment growth over the past three months, combined with a slight uptick in the unemployment rate, increases the odds that the Federal Reserve will cut interest rates again at their December meeting, though the greater determinant will be the Consumer Price Index data released next week,” said Basu. “For the construction industry, there is plenty of reason for optimism, given the prospect of lower interest rates and that contractors broadly expect their sales to increase over the next six months, according to ABC’s Construction Confidence Index.”

Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.4 months in November, according to an ABC member survey conducted Nov. 20 to Dec. 3. The reading is down 0.1 months from November 2023.

View the full Construction Backlog Indicator and Construction Confidence Index data series. 

Backlog in the infrastructure category contracted in November, though it is still the only category with higher backlog on a year-over-year basis.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels improved in November. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Contractor confidence surged in November even though backlog was unchanged for the month," said ABC Chief Economist Anirban Basu. “This sudden improvement in confidence reflects increased policy certainty in the wake of November’s presidential election, and contractors are optimistic about the prospect of falling borrowing costs over the next several quarters. Though backlog contracted in the commercial and institutional and heavy industry categories last month, contractors expect increased activity in privately financed segments during the next six months.”

The construction industry had 249,000 job openings on the last day of October, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 9,000 for the month and are down by 164,000 from the same time last year.

“Construction industry job openings fell again in October and are down nearly 40% over the past year,” said ABC Chief Economist Anirban Basu. “While JOLTS data can be volatile from month to month, especially at the industry level, the decline in unfilled construction positions is undeniable over the past few quarters. On average, just 3.4% of industrywide positions were open over the past six months, the lowest rate since 2020.

“There’s reason to suspect that election uncertainty, combined with the expectation that borrowing costs will decline over the next several quarters, delayed staffing decisions over the past few months,” said Basu. “Industry hiring fell to the lowest level since 2020 in October, while contractors laid off fewer workers than in any month on record. With industrywide employment growth outpacing the broader economy over the past few quarters and contractors on net expecting to increase their staffing levels over next six months, according to ABC’s Construction Confidence Index, it appears that construction job openings will rise through the early months of 2025.”

By Joe Camilo, Tocco Building Systems

The first time I served as ABC MA chair, things started fast and only seemed to accelerate from there.  Before I knew it, the year was coming to an end.  “Not this time,” I said to myself when I came back for a second time.  But here I am again, amazed that the year is coming to an end.

One thing the two terms have in common is the focus on creating a pipeline of qualified talent amid an ongoing construction labor shortage.  I’m glad to write that we’ve made important progress on that all-important front this year.

Just last month, we held the ribbon cutting for a new Gould Construction Institute (GCI) training facility.  The event was combined with our local craft championships – an example of the kinds of events we can now host in the new facility – and included a video message from Governor Healy.  Division of apprenticeship Services Deputy Director Margie Gilligan also attended, spoke about her department’s initiatives and how they expanded National Apprenticeship Week by declaring November National Apprenticeship Month in Massachusetts. 

In addition to giving GCI students access to state-of-the-art hands-on training with virtual simulators, the facility will also allow GCI to offer workforce programs to attract much-needed talent to the trades through programming such as exploratory trade/apprenticeship programs, middle school summer camps and career fairs.  It can also host the pre-apprenticeship programs conducted by ABC MA and GCI’s partner Building Mass Careers.

Speaking of Building Mass Careers, which works to attract people from all backgrounds to careers in the trades, 2024 saw BMC receive its designation from the state as a 501(c)3 public charity and hosted pre-apprenticeship training for three more cohorts of students this year, in addition to career fairs and other recruitment activities.  Executive Director Steve Sullivan even took part in a White House ceremony at which Building Mass Careers was part of the latest cohort of organizations recognized as “Apprenticeship Ambassadors.”

I have no doubt that working under the leadership of incoming Chair Luiza Mills, we will build on these and experience additional successes in 2025.

It has indeed been an honor to serve as chair of ABC MA for a second time in 2024.  Before my term ends, I want to thank both Chapter staff and you, my fellow members.  Without the great team we have at ABC, we could never have had such a successful year.  I wish all of you Happy Holidays and a healthy and prosperous New Year. 

Construction input prices increased 0.3% in October compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices also increased 0.3% for the month.

Prices increased in all three energy subcategories last month. Natural gas prices increased by 29.3%, unprocessed energy materials prices rose 9.9% and crude petroleum prices advanced by 7.3%. Overall construction input prices are 0.2% lower than a year ago, while nonresidential construction input prices are 0.5% lower.

“Higher energy prices drove the increase in construction input prices observed in October,” said ABC Chief Economist Anirban Basu. “While prices for a few other materials, like concrete and copper products, also rose for the month, overall input prices are lower than they were one year ago and have fallen 5% since reaching an all-time high in June 2022.”

“Heading into 2025, it’s unclear if prices will remain so well-behaved,” said Basu. “The next administration’s trade policy increases uncertainty regarding construction materials costs. Beyond the implications of potential tariffs, input prices may rise in the short term if purchasers rush to import materials prior to the implementation of those policies. As of October, contractors expected their profit margins to expand through the first quarter of 2025, according to ABC’s Construction Confidence Index. That portion of the index will bear close watching as trade policy shifts in the coming months.”

Close to 100 people, including ABC MA and Gould Construction Institute Board members, Division of Apprenticeship Standards (DAS) staff, GCI teachers and students, and industry partners attended the ribbon cutting for Gould’s new training facility on November 16.

The event included a video message from Governor Maura Healey, who congratulated GCI and talked about the important role the new facility would play in training the workforce needed to meet demand in the Massachusetts construction industry.

It was fitting that the ribbon cutting coincided with GCI’s annual Craft Championships.  In the past, the event had to be held at remote locations where Gould rented space; now it’s among the many activities we can host in our own facility.  Dan Wilson of DECCO won the pipefitting competition, followed by Bradley Morse, also of DECCO, and David Rollend of Notch Mechanical Constructors.  Christian Robson of Premier Power was the electrical winner, with Ronilson Rosario and Justin Giglio, both of Electrical Dynamics, placing second and third, respectively.  Wilson and Robson will go on to compete in the national competition at ABC’s National Convention, to be held February 25-27 in Las Vegas.

“This new facility gives us the opportunity to provide our students with state-of-the-art, hands-on training with virtual simulators and help alleviate the long-term labor shortage confronting the construction industry,” said GCI President Julie DeStefano.

DAS Deputy Director Margie Gilligan spoke about her department’s initiatives and how they expanded National Apprenticeship Week by declaring November National Apprenticeship Month in Massachusetts.  Members of her team are focusing on visiting and participating in as much apprenticeship activity as possible in November.

he facility will also allow GCI to offer workforce programs to attract much-needed talent to the trades through programming such as exploratory trade/apprenticeship programs, middle school summer camps and career fairs.  It can also host the pre-apprenticeship programs conducted by ABC MA and GCI’s 501(c)3 partner Building Mass Careers.

Among those celebrating the ribbon cutting were staff from Windover Construction, the general contractor for the project of transforming the space into a GCI training facility.

“For 12 weeks, our small group met every Wednesday to review and go over the project timeline for the facility and we all became close and enjoyed working with each other,” DeStefano said.  “They were an extension of our team for the buildout.”

Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.4 months in October, according to a survey of its member contractors conducted Oct. 21 to Nov. 4. The reading is unchanged from October 2023.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog fell in every region except for the Northeast in October, reversing the previous month’s trend in which every region except for the Northeast saw an increase in backlog. Only the Middle States have longer backlog than one year ago.

ABC’s Construction Confidence Index readings for sales and staffing levels improved in October, while the reading for profit margins inched slightly lower. The readings for all three components are above the threshold of 50, indicating expectations for growth over the next six months.

“While backlog declined in October, it remains at a healthy level and has been remarkably stable over the past year," said ABC Chief Economist Anirban Basu. “Like much of the economy, the construction industry remained in some semblance of a holding pattern in October as project owners continue to wait for election outcomes and for interest rates to decline further. Despite this wait-and-see attitude, contractors remain upbeat about the next two quarters. Approximately 53% of ABC members expect their sales to increase over the next six months, while just 22% expect them to decline.”

ABC: Almost Half of State Construction Unemployment Rates Down From a Year Ago

WASHINGTON, Nov. 4—The national September 2024 not seasonally adjusted construction unemployment rate was 3.7%, down 0.1% from the previous year, according to Associated Builders and Contractors’ state-by-state analysis of U.S. Bureau of Labor Statistics data. The analysis also found that 24 states had lower construction unemployment rates over the same period, four states were unchanged and 22 states were higher. 

National NSA payroll construction employment was 230,000 higher than last September. Since February 2022, seasonally adjusted construction employment has exceeded its pre-pandemic peak of 7.6 million. As of September 2024, SA payroll construction employment stood at 8.3 million.

There is some indication of loosening of the construction employment market relative to its pre-pandemic level. As of this September, 21 states had lower construction unemployment rates compared to September 2019, 27 states had higher rates and two states (Kentucky and Wisconsin) were unchanged.

“Construction employment continues to grow, reflecting the overall strength in the economy,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Construction activity and employment will be aided by lower interest rates as the Federal Reserve eases its monetary stance. Continued federal infrastructure spending will be an added source for construction employment.”

Recent Month-to-Month Fluctuations

In September, nationally, the estimated construction unemployment rate increased 0.5% from August. Only four states had lower estimated construction unemployment rates than in August. Meanwhile, 41 states had higher rates and five posted the same rate. High temperatures throughout the country, particularly in the West, along with significant rain in the Southeast, contributed to the higher construction unemployment rates in much of the country.

The Top Five States

The five states with the lowest estimated NSA construction unemployment rates for September were:

1. South Dakota, 1.1%
2. New Hampshire, 1.4%
3. Oklahoma, 1.5%
4. Florida and Mississippi (tie), 2.0%

All five states posted their lowest September NSA estimated construction unemployment rate on record. Also, among the states, South Dakota had the second largest year-over-year decline in its rate (down 1.7%) behind Connecticut (down 1.8%).

The Bottom Five States

The five states with the highest September estimated NSA construction unemployment rates were:

46. Montana, 6.0%
47. Minnesota, 6.2%
48. Illinois, 6.4%
49. New Jersey, 6.9%
50. Rhode Island, 11.3%

New Jersey had the largest monthly decrease in its NSA estimated construction unemployment rate (down 0.5%) and the third largest year-over-year decline (down 1.5%) among the states.

Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states. To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.

National nonresidential construction spending increased 0.1% in September, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.22 trillion.

Spending was up on a monthly basis in half of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.1%, while public nonresidential construction spending was up 0.4% in September.

“Construction spending inched higher in September, with growth fueled by ongoing infrastructure investment,” said ABC Chief Economist Anirban Basu. “Spending accelerated in several publicly funded segments in September, including highway and street, sewage and waste disposal and water supply. The privately funded nonresidential construction segment didn’t perform as well for the month, with spending in that segment contracting for the second time in the past three months.

“Despite September’s decline, private nonresidential construction spending remains less than 1% below the all-time high established in June,” said Basu. “Given ongoing manufacturing megaprojects and healthy backlog levels, according to ABC’s Construction Backlog Indicator, the nonresidential segment should hold up well as the industry waits for lower borrowing costs and looser lending standards to arrive.”

The construction industry added 8,000 jobs on net in October, according to an Associated Builders and Contractors analysis U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has grown by 223,000 jobs, an increase of 2.8%.  

Nonresidential construction employment increased by 13,500 positions on net, with growth in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 14,300 positions. Nonresidential building added just 300 jobs, while heavy and civil engineering lost 1,100 jobs last month.

The construction unemployment rate rose to 4.2% in October. Unemployment across all industries remained unchanged at 4.1% in October.

“October’s employment report was severely distorted by Hurricanes Helene and Milton,” said ABC Chief Economist Anirban Basu. “As a result, employers across all industries were estimated to have added just 12,000 jobs, the fewest in any month since the economy lost jobs in December 2020. Importantly, the separate survey that produces the unemployment rate was not affected by the storms and indicates that the jobless rate remained stable at 4.1% in October.

“Despite the underwhelming and heavily distorted economywide data, this jobs report indicates that the construction industry added jobs for the fifth straight month,” said Basu. “Over the past year, the construction sector has added jobs at exactly twice the rate of the broader economy, and growth has been even faster in the nonresidential segment. With contractors on net expecting their staffing levels to increase over the next two quarters, according to ABC’s Construction Confidence Index, it appears likely that industry payrolls will continue to expand through at least the early months of 2025.”