MBA Chart of the Week: Annual Growth in Payroll Employment

Employment data for February 2016 showed that U.S. payroll employment increased by 1.9 percent compared to a year ago, with eight broad industry groups outpacing this growth rate, while nine sectors saw a slower growth rate.  

Mining and logging was the only sector to see a year over year decline in payroll employment, dropping 16 percent over the year, as falling prices for oil and other commodities have adversely impacted hiring since late 2014.   

Construction led the increases with a 4 percent growth rate over the year, mostly driven by the specialty trade contractors segment, which grew 5 percent and accounts for over 60 percent of the overall construction headcount. This category includes jobs such as painting, electrical work, remodeling and repair and there was growth in both residential and non-residential contractor employment.  

This bodes well for the housing market as a whole, as it is a sign that new construction activity continues to grow, and that homeowners and developers have enough confidence in the market that they are maintaining and improving existing properties. On the other hand, shortages of skilled labor and lower investment in land inventory have been cited as constraints on new housing starts.   

To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.  

(Joel Kan associate vice president of economic forecasting with MBA; he can be reached at jkan@mortgagebankers.org.)