Nonresidential construction maintained hiring momentum in July, adding 20,000 jobs according to Associated Builders and Contractors. The broader construction sector gained 22,000 positions on net during the month, a figure driven largely by growth in specific specialized trades. On a year-over-year basis, the industry has expanded by 82,000 jobs, representing a 1.0% increase in employment.
Specialty Trades Lead Expansion
Gains were recorded across all three major subcategories of nonresidential work. Nonresidential specialty trade contractors added the most positions, increasing by 15,400. This group typically handles the detailed, high-value tasks often required for modern infrastructure projects.
Nonresidential building added 4,200 jobs, while heavy and civil engineering construction added 400 positions. The stability across these sectors suggests that demand for both new builds and maintenance work remains steady despite broader economic shifts.
Market Analysis and Outlook
“Nonresidential construction employment continued to expand at a healthy pace in July as the data center investment boom fuels ongoing demand for specialty trade contractors,” said ABC Chief Economist Anirban Basu.
Basu noted that the construction sector’s growth is happening alongside some concerning broader economic indicators. The unexpected loss of economywide jobs in July—the first since February—and massive downward revisions to prior months signal emerging labor market weakness.
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The divergence between the strong specific hiring numbers and the surprising drop in overall jobs creates a strange dichotomy for the sector. While developers might be eager to build data centers due to tax incentives or demand, the broader economic slowdown could eventually limit the capital available for these projects. On the other hand, if the labor market truly softens, contractors might face less wage pressure, allowing them to take on more work at higher margins than they could during the peak hiring period.
Unemployment Trends
The construction unemployment rate stood at 3.7% in July. Unemployment across all industries decreased to 4.1%, a figure that is 0.2 percentage points lower than it was one year ago.
This specific rate indicates a tight labor market within the construction industry, even as the national picture shows some cooling.
About the Association
The Associated Builders and Constructors is the organization behind the analysis. Founded in 1950, it operates on a merit-shop philosophy and supports its members through the development of people, winning work, and delivering projects. The group currently represents 24,000 members across 67 chapters.
For more detailed metrics, including the Construction Backlog Indicator and spending data, the association recommends visiting their dedicated economics page.
