US construction employment increased by 10,000 jobs in October and by 148,000, or 2.0 percent, over the past 12 months, 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 construction industry is still adding workers at a faster clip than the overall economy but growth has slowed as private nonresidential and multifamily construction spending shrinks,” said Ken Simonson, the association’s chief economist. “At the same time, public investment and a recent pickup in single-family homebuilding have helped employment to grow.”
Simonson 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.
Association officials said that the uncertainty and increased prices that come from recent trade fights and a series of threatened and imposed tariffs appear to be undermining demand for many types of construction projects. They urged the Trump administration to quickly resolve outstanding trade disputes with China, the European Union and other countries.
“Resolving trade disputes and providing businesses with greater certainty about trade and tariff levels will help accelerate demand for new construction projects,” said Stephen E. Sandherr, the association’s chief executive officer. “The best way to make sure our economy continues to expand is to quickly resolve a series of trade disputes that have contributed to business uncertainty and likely held back many new development and construction projects.”