In today’s US construction news, read about with an emphasis on construction employment and analysis by the National Association of Home Builders (NAHB), a closer examination of Tuesday’s Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) shows that the number of open construction sector jobs remained essentially unchanged at 339,000 in May. Meanwhile, according to an examination of federal employment data supplied by the Associated General Contractors of America (AGC), there has been an increase in construction employment in 39 states since last May, with 26 states creating jobs in this sector between April and May of this year. On the other hand, according to a recent report, 192 significant cultural infrastructure projects totaling US$8.58 billion were completed worldwide in 2023. Lastly, the data released on Monday emphasizes how reliant the US economy is on the continuous strength of consumer demand for services, with the manufacturing ISM indicating a decline and construction spending faltering.
Job Vacancies in US Construction in May Flat
Original Source: US CONSTRUCTION JOB OPENINGS FLAT IN MAY
The National Association of Home Builders (NAHB)’s analysis of Tuesday’s Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) shows that May’s construction sector job openings remained at 339,000.
The NAHB reports 346,000 construction employment in March, down from 456,000 in February. As longer-term rates rose, multifamily building stalled. This slowdown has reduced construction worker demand, lowering employment openings. A year ago, single-family home construction was weaker, therefore 363,000 jobs were open.
Construction job vacancies rose to 4.0% in May, down from 5.3% in February. The job openings rate has fallen as multifamily and single-family construction slows.
The construction layoff rate fell to 1.8% in May. The quit rate rose 2.4%.
Half of US Construction Jobs Rise
Original Source: Report: Construction employment up in half of US
According to Associated General Contractors of America examination of federal employment data, 39 states have added construction jobs since last May, and 26 states added jobs from April to May.
Even though project demand varies, association officials say construction labor shortages remain severe.
“Although some project types are slowing, there is unrelenting competition for workers for data centers, manufacturing plants, power and infrastructure projects in much of the country,” says AGC chief economist Ken Simonson. “The ‘war for talent’ is raising labor costs faster than in other industries.”
Between May 2023 and 2024, 39 states increased construction jobs. That period saw job losses in 10 states and DC. Employment in New Mexico was unchanged.
Texas added the most construction jobs (35,000, up 4.3%) in the past year, followed by Florida (27,700), California (17,000), and Michigan (15,900). Alaska saw the biggest 12-month gain (20.4 percent, 3,400 jobs).
After 12 months, Maryland lost the most construction jobs (5,000, down 3.1 percent), followed by Washington (3,900, down 1.7 percent), Pennsylvania (3,000, down 1.2 percent), and Colorado (2,300, down 1.2 percent). Washington, D.C. lost the most (3.3 percent, 500 jobs).
Industry employment rose in 26 states in May. Rhode Island and North Dakota were stable, while 22 states and Washington, D.C., decreased.
Ohio added the most jobs in May (7,000, 3%). The other states with strong monthly employment increases were Florida (5,500 jobs, 0.8 percent), Texas (0.6 percent), and New York (5,200 jobs, 5.2 percent).
Tennessee shed 1,700 construction jobs from April to May, followed by Wisconsin (1,500) and Oklahoma (1,100). Maine had the most employment losses (2.1 percent, 700).
AGC officials say a recent analysis shows the federal government drastically underinvests in workforce development initiatives to expose individuals to construction occupations and prepare them for them. The group wants Congress and the Biden administration to increase construction education and training funds.
“It is hard to recruit people into high-paying construction careers when four out of five federal dollars are used to encourage students to go to college and earn a four-year degree,” says AGC CEO Jeffrey Shoaf. “If we want to build the future economy, we must invest in the workforce today.”
Cultural Construction Projects Exceed $8 billion
Original Source: Cultural construction projects top US$8 billion in value
Report: 192 important cultural infrastructure projects were completed worldwide in 2023 for US$8.58 billion.
According to AEA Consulting’s Cultural Infrastructure Index study, 198 cultural construction projects worth US$5.62 billion were announced.
Projects completed rose in volume and value from 2022. While the number of new projects announced and finished is rising, “we see the value of investment decreasing, reflecting the current economic uncertainty affecting both the public and private sectors.”
Popular renovation and adaptive reuse projects showed continued growth. These 78 projects (41% total) were finished.
Museums and galleries accounted for 213 announced and finished projects (55% of total) worth $7.1 billion for the eighth year in a row. Next in popularity were performing arts centers, multipurpose arts facilities, and cultural districts.
Greater cultural infrastructure is being built outside cultural capitals. Over 275 cities in 48 nations were documented, although only 27% are in the top 75 worldwide metropolitan centers. Alexandria in Egypt and Sokcho in South Korea are important ventures outside cultural hubs.
Light US Manufacturing and Construction Data Emphasize Services Dependence
Original Source: Soft US manufacturing and construction numbers emphasise the dependency on services
Monday’s figures showed how dependent the US economy is on consumer demand for services, with the manufacturing ISM contracting and construction spending falling.
ISM components show US manufacturing issues.
The June ISM manufacturing index fell to 48.5 from 48.7, disappointing US data. The consensus predicted a little rebound to 49.1. The 19th sub-50 number in 20 months indicates contraction, with only March’s 50.3 reading breaking the trend. The chart below indicates that the ISM indices used to be a good lead indication for economic cycle turning points, but the economy is still strong despite the surveys’ downturn.
ISM indicators vs. US GDP YoY%
Production fell to 48.5 from 50.2 (6M avg 50.6), and new orders fell to 49.3 (6M avg 49.5). Employment dropped to 49.3 from 51.1 (6M average 48.2). The key three components are all in contraction area, indicating that manufacturing will not contribute to economic growth this year. One bright spot is that inflation pressures are easing, with prices paid falling to 52.1 from 57.0 versus 55.2 6M avg.
Financing issues limit construction spending.
Construction spending declined 0.1%MoM instead of 0.2% as projected, however April’s result was revised up to +0.3%MoM. May saw falling residential and non-residential building investment. Construction activity may slow this year due to financial issues and excessive borrowing costs.
According to the graphic below, investment related to the CHIPS Act, which encouraged semiconductor chip re-shoring, is the main driver of US construction spending. The money is limited, so we expect growth to slow in the second half of the year. Combining manufacturing and construction figures shows how much the US relies on consumers to drive the service sector.
Spending on non-residential building
Summary of today’s construction news
To sum it up, a portion of the construction industry, particularly multifamily buildings, stagnated at higher rates for longer periods. The demand for construction workers has somewhat decreased as a result of this slowdown, which has decreased the number of job openings in the sector. A year ago, during a period of lower single-family house development, there were 363,000 open jobs. Construction job postings have been trending lower as multifamily and single-family construction have slowed; in May, the rate was 4.0%, slightly lower than the 5.3% estimate from February.
Meanwhile, AGC executives point to a recent report that demonstrates how little money the federal government spends on workforce development initiatives that expose and prepare workers for professions in industries like construction. The group is pleading with Congress and the Biden administration to increase financing for programs that provide construction education and training.
On the other hand, major cultural infrastructure is increasingly being developed outside of the conventional cultural capitals. Only 27% of the projects were located in the top 75 global urban centers, out of approximately 275 towns and cities in 48 countries. Sokcho in South Korea and Alexandria in Egypt are examples of significant undertakings outside of the traditional cultural capitals.
Lastly, instead of increasing by 0.2% as anticipated, construction spending decreased by 0.1% month over month in April, though the revised figure increased by 0.3% month over month. Spending on buildings, both residential and non-residential, decreased in May. The funds are limited, so we anticipate that growth will slow down in the second part of the year. Combining the data for manufacturing and construction highlights how dependent the US is on consumer spending to maintain momentum in the service sector.
