With the threat of a recession constantly looming in the United States, the year 2022 has held much financial insecurity for most businesses and individuals. Economists have been sounding the recession alarm for months and the construction industry, like most other industries, has been feeling the effects. 

“Sky-high materials prices and shortages of skilled construction workers have forestalled a growing number of projects by suppressing demand at a time when the cost of delivering construction services remains elevated,” says Anirban Basu, Chief Economist for the Associated Builders and Contractors. He continues, “While backlog remains elevated from a year ago, this may have as much to do with the fact that projects are taking longer to complete than with underlying economic strength,” said Basu. “The expectation is that backlog will begin to fade for many contractors as the economy becomes less supportive.” So while things are not all rosy in the non-residential construction field, there are still some bright spots that bring some positivity to the industry as a whole. 

According to data from the U.S. Bureau of Labor Statistics, industry employment has increased by 4.2% or by 311,000 jobs this year. The construction industry added 32,000 jobs on net in July alone, with non-residential construction employment increasing by 18,300 jobs. This is excellent news for those who are seeking employment in the construction sector and for an industry that has been hit hard by supply chain issues and rising costs among other problems. This positive news has been much needed and brings hope to employees and employers alike.

The construction industry is a vital part of the American economy. Every year, construction companies invest billions of dollars in new projects, employing millions of workers in the process. In addition to the direct benefits of construction jobs, the industry also supports a wide range of other businesses, from suppliers to retailers. When construction activity is strong, it can have a ripple effect throughout the economy, boosting economic growth and creating new job opportunities. What’s more, the construction industry is an important source of tax revenue for state and local governments. When construction activity picks up, it’s good news for the entire country! So, let’s hope that this increase in construction work positions continues and has a positive impact on other parts of the construction industry.