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Non-Residential Construction Adds 10,000 Jobs; Job Growth Improved the Economic Outlook


Employment in the non-residential building sector grew by some 10,000 jobs in September, according to a report from the Bureau of Labor Statistics.

This was in sharp contrast to the loss of some 20,000 jobs in the homebuilding sector.

Revisions in the September jobs report eased the threat of a rapidly weakening economy, according to James Haughey, director of economics at Reed Business Data (www.buildingteamforecast.com). [link] Revised overall employment figures for August showed a gain of 89,000 jobs versus a loss of 4,000 as was originally reported. Some 25,000 jobs were added to the revised July count. A total of 110,000 new jobs was reported for September.

At mid-month, Haughey said that the economic environment in the construction industry had "improved markedly" in the past 30 days, switching from, "a substantial probability of a significant slowing in spending growth, to cautious optimism about near-average growth, with low inflation and credit rates." He attributed the turnaround to an easing of problems in the mortgage market and greater availability of credit, along with the job creation numbers.