By Kim Kennedy, Manager of Forecasting, Dodge Data & Analytics
BEDFORD, MA – May 4, 2018 – In April, employers added 164,000 jobs to their payrolls, slightly less than the 193,000 projected by a Bloomberg poll of economists. This moderate rate of job growth, combined with a decline in the labor force, was enough to push the unemployment rate down to 3.9% during April – the lowest rate since December 2000. April’s low unemployment rate is getting a great deal of attention in the press since a rate below 4% is a rare phenomenon. According to the Wall Street Journal, it has happened, “only a few times over the past 70 years – during the Korean War in the early 1950s, during the Vietnam War in the late 1960s and early 1970s, and during the tech boom of 2000”. But a deeper look into the numbers suggests that it was April’s 236,000 decline in the labor force that caused the unemployment rate to dip so low.
Regardless of the exact number, unemployment has reached amazingly low levels thanks to continuous job growth since October 2010. This 91-month expansion has made it the longest span of job growth on record. Furthermore, this year’s gains have remained robust, with a remarkable average of 200,000 jobs added per month, even stronger than last year’s average of 182,000. Fiscal stimulus coming from the December tax cuts and increasing government spending is likely a major factor behind the strength.
One disappointing element of the April jobs report, however, lies with wage growth. Average hourly earnings inched up just 4 cents in April and rose a very modest 2.6% over the past year. Despite the long period of job expansion and the resulting tightening of the labor market, wages have not kept pace. By comparison, the last time the unemployment rate hit 3.9%, wages were growing at a pace above 4.0%. Economists suggest that globalization, slower productivity growth, or the higher unemployment rate measure that includes discouraged workers (now at 7.8%) as possible reasons behind lagging wages, but none of these provide a fully satisfying explanation.
In April, the number of private sector jobs rose by 168,000, while the number of government jobs slid by 4,000. Goods-producing industries added 49,000 jobs over the month with manufacturing accounting for 24,000 of these and construction 17,000. The number of service-producing jobs grew by 119,000 in April with the largest number of these jobs coming from professional and business services, up 54,000, and education and health services, up 31,000.
The increase in construction jobs was expected with the onset of warmer spring weather in much of the northern U.S. Still, of those 17,000 jobs, specialty trade contractors gained 11,000, nonresidential building grew 5,000, and residential building advanced nearly 4,000. Heavy and civil engineering jobs, however, declined by 3,400 over the month. Over the year, construction jobs have increased 3.7% with residential building improving 5.1%, specialty trades 4.2%, nonresidential building 3.1%, and civil engineering 1.2%.
Dodge Data & Analytics is North America’s leading provider of commercial construction project data, market forecasting & analytics services and workflow integration solutions for the construction industry. Building product manufacturers, architects, engineers, contractors, and service providers leverage Dodge to identify and pursue unseen growth opportunities that help them grow their business. On a local, regional or national level, Dodge empowers its customers to better understand their markets, uncover key relationships, seize growth opportunities, and pursue specific sales opportunities with success. The company’s construction project information is the most comprehensive and verified in the industry.
As of April 15th, Dodge Data & Analytics and The Blue Book -- the largest, most active network in the U.S. commercial construction industry -- combined their businesses in a merger. The Blue Book Network delivers three unparalleled databases of companies, projects, and people.
Dodge and The Blue Book offer 10+ billion data elements and 14+ million project and document searches. Together, they provide a unified approach for new business generation, business planning, research, and marketing services users can leverage to find the best partners to complete projects and to engage with customers and prospects to promote projects, products, and services. To learn more, visit: construction.com and thebluebook.com.
Eric Becker | 104 West Partners | firstname.lastname@example.org
Sign up for any of our e-newsletters and receive key insights and industry trends
Thank you for your submission. You are now subscribed.
Call Dodge today at: 1-877-784-9556
Fill out the form below to get the information on Dodge Construction Central
Thank you for your interest. We will reach out to you shortly.