The U.S. construction industry added 36,000 jobs in January and now employs 6.809 million Americans, according to preliminary data from the Labor Department. The figure represents a 2.5-percent increase over the January 2016 employment total and the highest employment total since November 2008 when 6.813 million Americans were employed by the industry.
Construction’s unemployment rate rose 2 points during January to 9.4 percent.
Construction employment since January 2007
Home starts rise with leap from multi-family
Meanwhile in the residential sector, homebuilder confidence has fallen slightly as home starts rose during December despite a decrease in single-family units.
Total home starts rose 11.3 percent in December to a seasonally adjusted annual rate of 1.226 million, according to preliminary data from the Commerce Department. A huge 54-percent increase in multi-family units to a rate of 417,000 powered the monthly gain. Single-family units dropped 4 percent during December to a rate of 795,000.
Total starts finished 2016 up 5.7 percent from the previous year. Single-family starts are up 3.9 percent year over year while multi-family is up 10.3 percent.
Building permits, a good barometer of how the homebuilding industry is trending, were down slightly in January, falling 0.2 percent to a rate of 1.210 million. Permits ended the year up 0.7 percent over the 2015 rate.
The National Association of Home Builders reports that confidence among its members fell 2 points to a 67 in the latest release of the NAHB/Wells Fargo Housing Market Index. Any reading above a 50 indicates most home builders believe market conditions are good.
“Builders begin the year optimistic that a new Congress and administration will help create a better business climate for small businesses, particularly as it relates to streamlining and reforming the regulatory process,” says NAHB chairman Granger MacDonald.
“NAHB expects solid 10 percent growth in single-family construction in 2017, adding to the gains of 2016,” added NAHB chief economist Robert Dietz. “Concerns going into the year include rising mortgage interest rates as well as a lack of lots and access to labor.”
