Construction Unemployment Remains Highest For All Industries
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)