Construction employment increased by 228,000 jobs over the past year despite a weather-related dip last month, and the industry's unemployment rate fell to 7.4%, the lowest yet for March, according to an analysis of new government data by the Associated General Contractors of America. Association officials called for revitalizing and adequately funding career and technical education and training programs to ensure that employment in the high-paying industry would continue to grow.
"Construction employment indicators are still signaling strong demand on an annual basis, even though unusually bad weather in several regions probably depressed hiring in March," said Ken Simonson, the association's chief economist. "Employment is rising twice as fast as for the overall economy, pay rates and growth are outpacing the private sector as a whole, and the industry's unemployment rate was the lowest ever for March."
Construction employment totaled 7,150,000 in March, a dip of 15,000 for the month but an increase of 228,000, or 3.3%, over 12 months. The economist pointed out that the year-over-year growth rate in industry jobs was more than double the 1.5% rise in total nonfarm payroll employment.
Hourly earnings in the industry averaged $29.43 in March, a rise of 2.9% from a year earlier. That put average pay in construction 9.7% higher than the average for all nonfarm private-sector jobs, which rose 2.7% in the past year, to $26.82, the economist noted.
The unemployment rate in construction dropped from 8.4% a year earlier to 7.4% last month—the lowest March rate since the series began in 2000. The number of unemployed job seekers with recent construction experience declined to 696,000 in March 2018, which was the lowest total for March since 2001, Simonson said.
Residential construction—comprising residential building and specialty trade contractors—shrank by 7,000 jobs in March but added 114,200 jobs, or 4.3%, over the past 12 months. Nonresidential construction (building, specialty trades, and heavy and civil engineering construction) employment also increased by 114,200, or 2.7%, over 12 months, despite a drop of 8,200 jobs in March.
Construction officials said the new employment figures show the industry continues to create high-paying, long-term jobs but that there is a critical need for more workers. They urged officials at all levels of government to re-invigorate and adequately fund career and technical education programs.
"Construction offers great careers, with above-average pay both for entry-level workers and for the industry as a whole compared to the private-sector average," said Stephen E. Sandherr, the association's chief executive officer. "To make sure students and workers displaced from other jobs have the chance to gain the skills needed to succeed in growing sectors like construction, government officials must do their part. That means funding up-to-date career and technical education and training, and allowing the industry to collaborate in providing opportunities."
Related Stories
Market Data | May 25, 2018
Construction group uses mobile technology to make highway work zones safer
Mobile advertising campaign urges drivers who routinely pass through certain work zones to slow down and be alert as new data shows motorists are more likely to be injured than construction workers.
Market Data | May 23, 2018
Architecture firm billings strengthen in April
Firms report solid growth for seven straight months.
Market Data | May 22, 2018
Vacancies stable, rents rising, and pipeline receding, according to Transwestern’s 1Q US Office Market report
The Big Apple still leads the new construction charge.
Market Data | May 18, 2018
Construction employment rises in 38 states and D.C. from April 2017 to April 2018
California & West Virginia have biggest annual job gains, North Dakota has largest decline; California & Louisiana have largest monthly pickup, Indiana & North Dakota lead monthly drops.
High-rise Construction | May 18, 2018
The 100 tallest buildings ever conventionally demolished
The list comes from a recent CTBUH study.
Resiliency | May 17, 2018
Architects brief lawmakers and policy-makers on disaster recovery as hurricane season approaches
Urge senate passage of disaster recovery reform act; Relationship-building with local communities.
Market Data | May 17, 2018
These 25 cities have the highest urban infill development potential
The results stem from a COMMERCIALCafé study.
Market Data | May 10, 2018
Construction costs surge in April as new tariffs and other trade measures lead to significant increases in materials prices
Association officials warn that the new tariffs and resulting price spikes have the potential to undermine benefits of tax and regulatory reform, urge administration to reconsider.
Market Data | May 7, 2018
Construction employers add 17,000 jobs in April and 257,000 for the year
Unemployment rate for construction increases slightly compared to year earlier as higher pay levels appears to be attracting people with recent construction experience back into the workforce.
Market Data | May 2, 2018
Construction employment increases in 245 metro areas between March 2017 & 2018, as trade fights & infrastructure funding shortfalls loom
Houston-The Woodlands-Sugar Land, Texas and Weirton-Steubenville, W.Va.-Ohio experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines.
