The U.S. economy added 254,000 jobs in September, significantly surpassing economists’ expectations of 140,000 to 150,000 new positions. Among the leading sectors was construction, which saw an increase of 25,000 jobs with 17,000 in nonresidential specialty trade contractors. This growth underscores the resilience of the AEC industry, even as firms contend with material costs, labor shortages and storm damage from Hurricanes Francine and Helene in the southern United States.
For AEC industry leaders, the report highlights the continued importance of efficient project delivery methods like design-build, particularly in nonresidential developments. Paired with the government’s push for infrastructure investments, the ongoing demand for skilled labor signals optimism for sustained growth as firms remain competitive.
The top three sectors experiencing gains were leisure and hospitality (+69,000), health care (+45,000) and government (+31,000). Although unemployment was expected to rise, it fell slightly to 4.1%. With a month until Election Day and early voting already underway, the report is a reminder of the critical role construction plays in driving the economy forward. CNN’s John Berman said, “The numbers show the economy is in a good place,” a sentiment that could influence voters’ decisions leading up to Nov. 5. However, with Hurricane Helene potentially impacting future data collection, next month’s report may show unusual patterns, adding some uncertainty as Election Day approaches.
Revisions to July and August added 72,000 additional jobs, further accelerating labor market momentum. Still, there are signals of caution from employers, such as wage growth holding steady at 0.4% and the average workweek edging down to 34.2 hours. CNN’s Julie Chatterley pointed out on CNN News Central that for those on the job market, “it feels tough,” despite high numbers, citing low hiring and quit rates as potential reasons. Bloomberg’s Enda Curran described the upward revision as “solidifying the labor market’s strength,” while Stephanie Roth of Wolfe Research noted inflation and interest rates may continue to impact employer decisions on hours and hiring.
The Federal Reserve’s expected 25-basis point rate cut may still proceed, but the report reduces the likelihood of a larger cut. As Jeanna Smialek of The New York Times said, steady wage growth and low unemployment could shift the Fed’s outlook.
Regardless, Chatterley summed it up with a little humor, saying, “the technical term” for this month’s jobs report is “hot,” emphasizing the magnitude of the gain — nearly twice the projected figure.
