Two indicators last week suggest construction is in a holding pattern overall but with large differences between residential and nonresidential construction. On Friday, the Bureau of Labor Statistics reported that seasonally adjusted construction employment in November, at 6,541,00, was virtually unchanged compared to October and to the previous six months. The figure was 88,000 (1.3%) below the year-ago number, compared to a decline of 0.2% in the entire economy. General building contractors employed 2% more workers than in November 2001; heavy construction, except building, 4% fewer; and special trade contractors, 2% fewer. However, average weekly hours for construction workers slipped to 38.2 from 38.4 in October, 38.8 in September and 39.3 a year ago. As a result, average weekly pay in the industry was virtually unchanged from a year before.
The seasonally adjusted value of construction put in place in October was $835 billion, up 0.2% from the revised September figure. The 10-month total was also 0.2% above the first 10 months of 2001. Comparing 10 months of 2002 and 2001, private residential building construction (including improvements) was up by 6%, private nonresidential building construction was down by 17%, and public construction was up by 7%. On a year-to-date basis, standout sectors included public educational (+14%) and transportation facilities (+10%), private health-care (hospital, medial building and special care, +13% combined), and multi-family housing (+11%, surprisingly higher than single-family, +5%). The big losers have been private manufacturing (-45%), office (-30%), lodging (-28%) and warehouse structures (-25%).