Groups Blame Tariffs, Immigration Policies as Construction Loses 7K Jobs in August

 

The ongoing impacts of tariffs and immigration enforcement actions were among the factors cited by economists for the construction industry’s estimated job loss of 7,000 positions in August. Moreover, the Bureau of Labor Statistics’ revised estimates of past months now show that construction jobs have declined during each of the past three months.

According to BLS’ latest job report, released Sept. 5, heavy and civil engineering was the only construction sector showing gains during August, with an estimated overall increase of 2,300 workers.

Specialty trade contractors shed the greatest number of jobs, with a loss of 5,400 positions overall. Notably, the vast majority of that decline—5,200 positions—was among specialty contractors focused on residential construction. Nonresidential specialty firms reported a decline of 200 positions.

Economists with Associated Builders & Contractors (ABC) and Associated General Contractors of America (AGC) both cited continuing worries over the impacts of tariffs, immigration enforcement actions and other policy changes as factors in the decline.

“Despite these job losses, construction labor shortages appear to be worsening as immigration policy weighs on the supply of workers,” said Anirban Basu, ABC’s chief economist in a press release.

“Construction industry data have been particularly downbeat since March,” Basu added. “With materials prices rising and construction spending shrinking, it’s hardly a surprise that the industry’s workforce is contracting.”

Ken Simonson, chief economist with AGC, also expressed concern. “The latest figures show that nonresidential construction—not only homebuilding—has stalled,” he said. “That fits with reports that owners have hit the pause button on many projects, in large part because of uncertainty over the impact of tariffs and other policy upheavals.”

In its press release regarding the August job numbers, AGC noted that its recent AGC of America-NCCER Workforce Survey found that “16% of construction firms reported that owners had canceled, postponed or scaled back projects resulting from changes in demand or need due to tariffs.” Additionally, 26% of survey respondents reported experiencing project setbacks “resulting from changes in demand or need due to policy changes in areas such as federal funding, taxes or regulations.”

Also, 28% of survey respondents reported that immigration enforcement actions had affected their projects during the past six months.

“The economy depends on construction,” Jeffrey D. Shoaf, the association’s chief executive officer, said in a press release. “Constant changes in tariffs and other federal policies, and misdirected immigration enforcement are interfering with the industry and the broader economy.”

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