(The Center Square) – The U.S. construction industry lost some 7,000 jobs in August, marking the third straight month of employment losses, according to an analysis by Associated Builders and Contractors of U.S. Bureau of Labor Statistics data.
Construction is Louisiana’s seventh largest employer, according to data from the bureau. With roughly 139,000 employed, construction constitutes about 7% of the state’s workforce.
Fortunately for Louisiana, the contractor association data showed that heavy and civil engineering construction – such as port improvements and energy infrastructure – was one of the few bright spots in August, growing 2,300 jobs since July and up 2% since last year. Energy infrastructure and port improvements are among the key industries being target by Louisiana Economic Development.
The industry is still up 58,000 jobs from 2024 – a 0.7% gain – but momentum has slowed. Nonresidential construction employment fell by 1,200 positions in August, with losses concentrated in nonresidential building (3,300 jobs) and nonresidential specialty trade contractors (200 jobs). Heavy and civil engineering was the only nonresidential segment to grow, adding 2,300 jobs.
Residential construction also slipped, losing 6,100 jobs nationwide (minus-0.8%) in August, including 900 in residential building and 5,200 among residential specialty trade contractors.
“The construction industry has now lost jobs in each of the past three months,” said Anirban Basu, a chief economist with the contractors group. “Industrywide employment is up by just 6,000 positions since December, and every subsegment except for heavy and civil engineering lost jobs in August. Despite these job losses, construction labor shortages appear to be worsening as immigration policy weighs on the supply of workers.”
Basu added that rising materials prices and shrinking construction spending are contributing to the downturn, even as contractors remain optimistic about sales over the next six months, according to ABC’s Construction Confidence Index.
Iron and steel prices are up almost 10% since last year.
