Construction Jobs Changes Reflect Gradual Shift In Economic Activity

Economic activity – growth and job creation – has remained remarkably strong for several years now. That resilience in the face of substantial headwinds such as higher interest rates and rising oil prices likely comes from a gradual shift in what is driving the economy. Much of economic growth since the start of the pandemic was carried by more consumer demand, fueled by pandemic relief legislation enacted in 2020 and 2021. As that extra boost to consumer demand disappeared, economic activity has gradually shifted to more investment spending by businesses and state and local governments. The composition of construction employment is one key area, where that shift is visible.

Construction employment falls roughly into three categories. Those include residential construction, non-residential construction and heavy engineering. Residential construction includes the work on single and multifamily housing. Non-residential construction comprises work on office building, manufacturing plants, new mines, among other commercial and government buildings. Heavy engineering refers to infrastructure related activities on roads, bridges, utility lines, canals and others.