Construction Jobs up by Almost 40,000

Category: Commercial Real Estate

A new report points to nearly 40,000 new construction jobs in May, says HousingWire. While the Bureau of Labor Statistics released a disappointing jobs report for May nonfarm job growth, ADP and Moody’s Analytics’ National Employment Report points to positive signs for private-sector employment with a seasonally adjusted gain of 253,000 for May.

“Very strong month” for growth

“May proved to be a very strong month for job growth,” Ahu Yildirmaz, vice president and co-head of ADP Research Institute, told the news outlet. “Professional and business services had the strongest monthly increase since 2014. This may be an indicator of broader strength in the workforce since these services are relied on by many industries.”

The most important news for the housing industry was the report that the goods-producing sector was set to increase by 48,000 jobs in May. The article points out the bulk of this growth was down to construction jobs, which constituted 37,000 of the total. Natural resources and mining and manufacturing sectors made up the remainder.

Job growth “rip-roaring”

“Job growth is rip-roaring,” Mark Zandi, chief economist at Moody’s Analytics, told reporters. “The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses’ number-one challenge will be a shortage of labor,” he added.

Elsewhere in the report was the growth of the service-providing sector pegged at 205,000 jobs, the bulk of which was due to a surge of 88,000 professional and business sector hires. Financial activities, education and health, and trade, transportation, and utility sectors also grew, while information and leisure and hospitality reportedly shed jobs.

Posted on: Tuesday, June 13, 2017