U.S. job market remains tight, construction employment reaches 10-year high

The U.S. job market continued to chug along in June, as total nonfarm payroll employment increased by 213,000. However, the nation’s unemployment rate rose by 0.2 percent to 4.0 percent in June, as the number of unemployed persons increased by 499,000 to 6.6 million. The jobless rate is still 30 basis points lower than it was a year ago when it registered 4.3 percent.

The sectors that accounted for the lion’s share of job gains for the month included professional and business services (+50,000), manufacturing (+36,000) and healthcare (+25,000). Employment in the retail trade declined by 22,000.

Construction employment increased by 13,000 jobs in June, and the sector has gained 282,000 jobs during the past 12 months, reaching a 10-year high, according to an analysis of new government data by the Associated General Contractors of America. Construction employment totaled 7,222,000 in June, the highest level since May 2008 and a gain of 4.1 percent over the past 12 months.

“The continued uptick in jobs in healthcare and construction supports the growth we’re seeing in commercial real estate loan volume in these sectors,” notes Nikhil Kanodia, managing director and head of FHA lending at Greystone. “Construction spending is up, the rising interest rate environment points to a growing economy, and we’re expecting deals to continue at their current clip or higher through the end of the year.”