Happenings

Construction Employment Sees Net Gain of 16,000 in August; Industry Has Recovered More Than 60 Percent of Jobs lost in March and April Due to COVIDShare this on Facebook

According to a recent press release from Associated Builders and Contractors (ABC), the construction industry continues to witness the beginnings of a strong recovery from the hit it sustained during the nationwide lockdowns at the onset of the Coronavirus crisis.

ABC’s Chief Economist Anirban Basu points out that delays to the economy fully reopening in July due to higher positive test results in the South that many expected the August job numbers would be disappointed. “But rather, [the August] report indicates that America’s nascent economic recovery remains fully in place. The big news was that the nation’s rate of unemployment declined to 8.4 percent, even as more people reentered the job market, which was due in part to a cessation of a sizable federal supplement to state unemployment insurance benefits,” Basu said.

While the jobs numbers are encouraging, Basu warned that the recovery may still hit some bumps in the road, “Despite the ongoing economic momentum, nonresidential contractors should brace for a challenging year,” Among the factors that could interrupt the upward economic trajectory, Basu pointed to “diminished cashflow among property owners, lingering uncertainty, elevated commercial vacancy and project postponements and cancellations,” could potentially lead to a downturn beginning in late 2020 or early 2021.

Ultimately, only time will tell. In the meantime, proper planning and a bit of a bullish attitude may be the keys to ushering “normal” back into the construction industry.

You can read ABC’s entire press release here.