NH’s construction unemployment rate remains unchanged in June

Nationally, an increase of workers reentering the market sparks optimism for economic growth

New Hampshire's June construction unemployment rate remained relatively unchanged, dropping just slightly from 3.8 percent to 3.5 percent, according to estimated figures released by Associated Builders and Contractors. 

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Nationwide, the construction unemployment rate rose 0.2 percent from June 2017, to 4.7 percent. That is the result of 33 states experiencing an increase in their construction unemployment rates, according to the U.S. Bureau of Labor Statistics. However, at the same time, the number of workers in the industry nationally has also grown, with 282,000 more workers than in June 2017.

This is a good sign, said Bernard M. Markstein, Ph.D., president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “The rise in the construction unemployment rate was a result of discouraged workers reentering the labor market in search of employment due to excellent prospects for obtaining a job in construction with good pay. The number of reentrants was greater than the market could absorb in a short period even as demand for construction workers remains strong, sending the unemployment rate higher.”

The states with the highest construction unemployment rates were: Mississippi (10 percent), West Virginia (9 percent), Alaska (8.4 percent), Alabama (7.6 percent) and Kentucky (7.4 percent).

Construction employment also rose in 47 states from May. The only outliers were Alabama and South Carolina, where construction employment fell, while in Hawaii, which only reports mining and construction employment combined, it was unchanged.

Nationally, seasonally adjusted private construction employment increased 13,000 from May, while the number of unemployed construction job seekers rose by 51,000, resulting in an increase in the June national construction unemployment rate. The movement of discouraged workers back to the labor market appears to have occurred throughout the country, among the vast majority of states, not concentrated in just a few states, according to ABC. 

In the New England region, Vermont, which had the third lowest construction unemployment rate in May, tied with Utah for the sixth lowest rate in June, at 2.2 percent. Maine, which had the fifth lowest rate in May, dropped to 24th place with 4.4 percent construction unemployment rate in June. 

The states with the lowest estimated construction unemployment rates were: Idaho (1.7 percent), Iowa and Minnesota (1.9 percent) and South Dakota and Wyoming (2 percent).

Categories: Real Estate & Construction