Construction employment increased by 10,000 jobs in October and by 148,000, or 2.0 percent, over the past 12 months, while construction spending decreased by 2.0 percent from September 2018 to September 2019, according to an analysis of new government data by the Associated General Contractors of America. Association officials said demand for construction is being undermined by uncertainty and tariffs that are part of a series of trade disputes with China, the European Union and other countries.
The association observed that the 2.0 percent growth in construction employment between October 2018 and October 2019 was the slowest in almost seven years but that the rate remained well above the 1.4 percent increase in total nonfarm payroll employment. Average hourly earnings in construction—a measure of all wages and salaries—increased 2.4 percent over the year to $30.95. That figure was 9.8 percent higher than the private-sector average of $28.18.
Construction spending totaled $1.294 trillion at a seasonally adjusted annual rate in September, a gain of 0.5 percent from the August rate but 2.0 percent less than the September 2018 rate, according to estimates the U.S. Census Bureau released today. Year-to-date spending for January-September combined fell 2.2 percent from the year-ago total.
Public construction spending increased 1.5 percent for the month and 5.6 percent year-to-date. Among the three largest public categories, spending in the first nine months of 2019 climbed 9.3 percent compared to the same period in 2018 for highway and street construction spending, 1.0 percent for educational construction and 9.1 percent for transportation (airports, transit, rail and port) projects.
Private residential construction spending increased 0.6 percent for the month but slid 7.9 percent year-to-date. Single-family homebuilding rose 1.3 percent from August to September, the third consecutive monthly gain, but fell 8.0 percent year-to-date. Spending on multifamily projects declined 0.7 percent for the month but was 5.9 percent higher year-to-date.
Private nonresidential spending decreased 0.3 percent from August to September and 0.6 percent year-to-date. Major private nonresidential segments experienced mixed year-to-date results. The largest—power construction (comprising electric power generation, transmission and distribution, plus oil and gas fields and pipelines)—climbed 5.5 percent year-to-date. Commercial (retail, warehouse and farm) construction plummeted 15.2 percent. Manufacturing construction posted a 3.2 percent gain. Private office construction spending rose 6.8 percent.