New York Construction News staff writer
As the incoming Trump administration prepares to take office, the Associated General Contractors of America (AGC) is urging President-elect Trump to prioritize federal reviews for infrastructure and construction projects. The association believes that speeding up the review process will allow contractors to start work on much-needed projects, boosting employment in the construction sector.
“Contractors are expecting less red tape and more construction activity under the new administration,” said Jeffrey D. Shoaf, AGC’s chief executive officer. “The good news is that the president-elect already has the authority needed to speed up reviews and increase construction demand and employment.”
Despite some softening in demand over the past year, construction sector employment rose by 10,000 jobs in November, with moderate increases in both residential and nonresidential construction. The sector continues to hold onto workers, signaling optimism for a rebound in demand in the near future.
“Job gains in both homebuilding and nonresidential building construction have slowed, but contractors are maintaining their workforce, anticipating a pick-up in activity soon,” said Ken Simonson, AGC’s chief economist.
In total, construction employment reached 8.31 million in November, marking a 2.6 percent increase year-over-year—nearly double the growth rate of total nonfarm employment. Residential construction saw a 1.6 percent increase in jobs, while nonresidential construction rose by 3.3 percent.
Sector employment trends and outlook
Construction employment trends varied by sector. While nonresidential building contractors reduced their workforce by 1,700 jobs in November, the heavy and civil engineering segment, which includes infrastructure and power projects, added 1,500 jobs. Nonresidential specialty trade contractors saw a gain of 7,000 employees, while residential construction and specialty contractors added 1,400 and 1,700 jobs, respectively.
The latest government data also shows that layoffs in the construction industry fell to their lowest monthly total in the 25-year history of the series, indicating that contractors expect to need more workers in the near future despite modest job growth in November.
AGC officials say promises of regulatory relief from the incoming administration could provide the boost needed to revitalize the industry. Congress has already passed measures designed to speed up the federal review process for construction projects, but the current administration has yet to act on them. The association is urging the new administration to take swift action to reduce bureaucratic delays and allow critical infrastructure projects to move forward.
With the right leadership and regulatory reforms, the construction industry is poised for growth, creating more jobs and fueling the economy.
