Nonfarm payroll employment increased in 39 states and the District of Columbia in December compared to the previous month, while 11 states saw a decrease. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 216,000 in December, following a gain of 173,000 jobs in November.
On a month-over-month basis, employment data was most favorable in California, which added 23,400 jobs, followed by Texas (+19,100), and then Florida (+16,500). A total of 28,700 jobs were lost across thirteen states, with Virginia reporting the steepest job losses at 11,800. In percentage terms, employment in Alaska increased the highest at 0.5%, while Vermont saw the biggest decline at 0.6% between November and December.
Year-over-year ending in December, 2.7 million jobs have been added to the labor market. Except for Mississippi, all other states and the District of Columbia added jobs compared to a year ago. The range of job gains spanned from 1,400 jobs in Vermont to 369,600 jobs in Texas. Conversely, Mississippi lost 7,800 jobs on a year-over-year basis. In percentage terms, Nevada reported the highest increase at 3.8%, while Mississippi showed the largest decrease at 0.7% compared to a year ago.
Across the nation, construction sector jobs data[1]—which includes both residential and non-residential construction— showed that 32 states reported an increase in December compared to November, while 16 states and the District of Columbia lost construction sector jobs. The remaining two, Alaska and Indiana reported no change on a month-over-month basis. New Jersey, with the highest increase, added 3,800 construction jobs, while Ohio, on the other end of the spectrum, lost 4,100 jobs. Overall, the construction industry added a net 17,000 jobs in December compared to the previous month. In percentage terms, South Dakota reported the highest increase at 4.1% and the District of Columbia reported the largest decline at 1.9%.
Year-over-year, construction sector jobs in the U.S. increased by 197,000, which is a 2.5% increase compared to the December 2022 level. Texas added 32,800 jobs, which was the largest gain of any state, while New York lost 15,600 construction sector jobs. In percentage terms, South Dakota had the highest annual growth rate in the construction sector at 20.8%. Over this period, New York reported the largest decline of 3.9%.
[1] For this analysis, BLS combined employment totals for mining, logging, and construction are treated as construction employment for the District of Columbia, Delaware, and Hawaii.
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Interesting read! Just like a solid foundation is crucial in construction, a stable job market at the state level lays the groundwork for a robust housing sector. Employment trends can significantly impact the demand for homes and, consequently, the need for construction loans. It’s a reminder of how economic factors intertwine with the construction industry, influencing financing and development opportunities.