from Mark Smith, Advocate, California Builders Alliance
U.S. added just 73,000 jobs in July and numbers for prior months were revised much lower
Nonfarm payroll growth was slower than expected in July and the unemployment rate ticked higher, raising potential trouble signs for the U.S. labor market as President Donald Trump ramps up tariffs. Job growth totaled a seasonally adjusted 73,000 for the month, above the June total of 14,000 but below even the meager Dow Jones estimate for a gain of 100,000, the Bureau of Labor Statistics reported Friday. June and May totals were revised sharply lower, down by a combined 258,000 from previously announced levels. At the same time, the unemployment rate rose to 4.2%, in line with the forecast.
https://www.cnbc.com/2025/08/01/jobs-report-july-2025.html
Calif. contractors get exemption for marijuana testing
California construction employers can continue using urine drug tests for marijuana under an exemption in California AB 2188, which prohibits discrimination based on off-duty marijuana use. The exemption applies to employees in the building and construction trades, those tested under federal regulations, and positions requiring federal background checks. Full Story: The National Law Review
June construction unemployment remains steady
The US construction unemployment rate remained low in June at 3.4%, slightly up from last year, with South Dakota at the lowest at 0.8% and Rhode Island the highest at 8.9%. Despite these figures, economists such as Ken Simonson of the Associated General Contractors of America and Bernard Markstein of Markstein Advisors are cautious, noting that economic uncertainty is causing hesitancy in new projects and hiring. Full Story: Engineering News-Record (tiered subscription model)
Fed holds rates steady, contractors adapt to high costs
The Federal Reserve has kept its benchmark interest rate steady at 4.25% to 4.5%, disappointing contractors who had hoped for a rate cut to boost stalled projects. Developers relying on traditional financing continue to face challenges, leading to a shift toward public projects backed by federal infrastructure funds. Industry leaders emphasize the need for tighter preconstruction planning and flexible execution to mitigate risks in this environment. Full Story: Construction Dive
ICE raids cause project delays, cost overruns
A $20 million Alabama recreation center that was on pace and under budget is now seeing delays as workers stay away due to fears over Immigration and Customs Enforcement Raids. It's just one instance of construction projects across the US facing significant delays and cost overruns due to heightened ICE raids under President Donald Trump. Meanwhile, construction spending has dropped 3.5% since May, a decline rarely seen outside recessions. Industry leaders have called for temporary legal status for foreign-born workers, but the Trump administration has resisted measures resembling amnesty. Full Story: U.S. News & World Report
Nev. law lets construction start earlier to beat heat
Nevada has enacted a law allowing construction crews to begin work as early as 5 a.m. from April to September, aiming to protect workers from extreme heat. Signed by Gov. Joe Lombardo, the law applies to commercial and infrastructure projects at least 300 feet from occupied homes. The move comes in response to a rise in heat-related complaints and injuries reported to the Nevada Occupational Safety and Health Administration. Full Story: Nevada Current (Carson City)
Materials prices rise as tariffs add volatility
US nonresidential construction material prices increased 0.2% in June and 2.3% year over year, driven by steel, aluminum and wood products, according to the Associated General Contractors of America. The increase, the largest 12-month gain since February 2023, comes ahead of new tariffs, including a 50% tariff on copper set for Aug. 1. AGC CEO Jeffrey Shoaf says that inflationary pressures could lead to project delays or cancellations. Full Story: Construction Briefing
US, EU reach framework deal to set 15% tariff
The US and the EU have reached a framework agreement to set a 15% tariff on most imports from the EU, including cars and semiconductors, although pharmaceuticals remain a point of contention. The EU has committed to purchasing $750 billion of US energy exports and investing $600 billion in the US over three years. The agreement also includes zero tariffs on certain strategic products and aims to establish a quota system for steel and aluminum. The deal comes ahead of the Aug. 1 deadline for the reinstatement of country-specific US tariffs, which would have imposed a 30% tariff on EU imports. Full Story: Construction Dive
N.Y. to require all-electric new buildings
New York will require new buildings to be all-electric starting at the end of the year, with buildings seven stories or shorter and less than 100,000 square feet affected first. The law includes exemptions for restaurants, hospitals and factories. New York City already has a similar law in place. Full Story: CoStar Group
Burnout in construction: A hidden safety risk
Burnout is a significant issue in the construction industry, with 60% of professionals reporting regular burnout due to long hours and physical demands, writes Allyson Sherrier. This leads to more mistakes, higher turnover and safety issues, as fatigue is a factor in 90% of construction accidents, Sherrier notes. Sherrier urges leaders to model healthier work habits, talk about stress and offer support for mental health. Full Story: For Construction Pros
Lack of trust in sick leave policies affects productivity
A TEAM Software report shows that only 10% of employees feel comfortable being honest about taking a mental health day, and 42% have exaggerated physical symptoms to justify time off for mental health. The report highlights generational differences, with Generation Z more likely to recognize psychological strain but less likely to trust their workplace to address it. Full Story: Construction Dive
EPDs essential for sustainable precast concrete projects
Environmental product declarations have become essential for sustainable construction, and the Precast/Prestressed Concrete Institute has released updated regionalized EPDs that reflect actual production data, allowing stakeholders to make informed decisions. EPDs enable benchmarking, market access and compliance with green building standards. Full Story: For Construction Pros
L.A. tunnel work halted after partial collapse
Work on the Los Angeles Effluent Outfall Tunnel remains halted after a partial collapse July 9 attributed to high ground pressure. The tunnel boring machine remains stationary, and no one has been able to assess the breach. The $630 million project, part of the Clearwater Project, aims to transport treated wastewater to the ocean and replace aging infrastructure. Full Story: Construction Dive
Yosemite National Park begins wastewater system upgrade
Yosemite National Park in California has started the El Portal Wastewater Treatment Plant project, a $239 million initiative funded by the Legacy Restoration Fund under the Great American Outdoors Act. The new plant will replace a 45-year-old system, processing up to 1 million gallons of wastewater daily to serve over 4 million visitors and 700 residents annually. Full Story: World Construction Network
---------------------------------------------------
Mark Smith
Advocate
California Builders Alliance
5370 Elvas Avenue ǀ Sacramento, CA 95819
Cell: 916.335.5072
Email: mark.smith@calbuilders.org
Email: mark@smithpolicygroup.com
