Data Digest's latest report shows construction spending and unemployment are still on the rocks. The Bureau of Labor Statistics reported that May’s nonfarm payroll employment increased by 54,000, a small increase compared to the average of 220,000 for the past 3 months. The unemployment rate went up just 0.1% to 9.1% in May.

Construction unemployment in May was down to 16.3% from 20.1% May 2010, but remains the highest unemployment rate for all industries.

April’s construction spending was $765 billion, 0.4% higher than March. However, April’s numbers was still 9.3% lower than year-ago levels, according to the Census Bureau.

Associated General Contractors of America (AGC) reported “Public construction shrank for the seventh month in a row to a four-year low, down 1.9% from March and 7.5% from April 2010…Private nonresidential spending edged up 0.5% for the month but was down 8.5% year-over-year…Private residential construction climbed 1.7% from March but fell 10% from April 2010. The largest segment, improvements to existing single- and multi-family housing, jumped $8 billion (7.6%) for the month, although the initial estimate for March was reduced by $10 billion. New single-family spending fell 1.0% and 13%; new multifamily, -0.1% and -7.6%.”

Multifamily construction, especially U.S. hotels and resorts, along with for-profit student housing seem to be rebounding.

(Source: Data Digest)