Construction employment increased by 36,000 jobs in January to the highest level since August 2008, according to an analysis of new government data by the Associated General Contractors of America. Association officials said a possible new measure being discussed in Washington that would invest an additional $1.5 trillion in repairing and improving infrastructure would both help the sector continue to add jobs and attract new workers.
"The construction industry has consistently added workers at nearly double the rate of the overall economy," said Ken Simonson, the association's Chief Economist. "The outlook remains positive for further growth in the industry. But finding workers to complete all projects will be a challenge with unemployment so low overall and in construction."
Construction employment totaled 7,099,000 in January, a gain of 36,000 for the month and 226,000, 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.
Residential construction—comprising residential building and specialty trade contractors—added 19,000 jobs in January and 88,400 jobs, or 3.3%, over the past 12 months. Nonresidential construction (building, specialty trades, and heavy and civil engineering construction) employment increased by 16,400 jobs in January and 137,200 positions, or 3.3%, over 12 months.
The number of unemployed jobseekers with recent construction experience fell to 707,000 in January, down from 859,000 in January 2017, while the unemployment rate in construction dropped to 7.3% last month from 9.4% a year earlier. The number and rate were the lowest for January since the series began in 2000. Unemployment data by industry are not seasonally adjusted, and winter figures for construction are normally higher than they are for total nonfarm employment, but these declines show how difficult it has become for the industry to find experienced workers, Simonson said.
Average hourly earnings in the industry climbed to $29.33, a rise of 2.9% from a year earlier. The economist noted that construction pays nearly 10% more per hour than the average nonfarm private-sector job in the United States.
Construction officials said that a new presidential push to boost infrastructure investments by $1.5 trillion over the next ten years would give a needed boost to infrastructure contractors who, according to construction spending figures released yesterday, have seen lagging demand compared to other market segments. Moreover, significant new and long-term investment in infrastructure would help encourage more people to consider high-paying careers in construction.
"Bringing our aging infrastructure back to a state of good repair will support short-term economic growth while making our economy more efficient and competitive over the long-term," said Stephen E. Sandherr, the association's Chief Executive Officer. "These new investments will also send a clear signal to new workers to consider careers in construction and the middle-class life those jobs support."
Related Stories
| May 14, 2012
ArchiCAD e-Specs integration unveiled
Architects, engineers and construction professionals use InterSpec’s e-SPECS products on thousands of projects annually to maintain synchronization between construction models, drawings, and project specifications.
| May 11, 2012
2012 White Paper: High-Performance Reconstructed Buildings: The 99% Solution
Download the complete White Paper, Chapters 1-10
| May 11, 2012
Chapter 10 Action Plan: 18 Recommendations for Advancing Sustainability in Reconstructed Buildings
We offer the following recommendations in the hope that they will help step up the pace of high-performance building reconstruction in the U.S. and Canada. We consulted many experts for advice, but these recommendations are solely the responsibility of the editors of Building Design+Construction. We welcome your comments. Please send them to Robert Cassidy, Editorial Director: rcassidy@sgcmail.com.
| May 11, 2012
Chapter 9 The Key to Commissioning That Works? It Never Stops
Why commissioning for existing and renovated buildings needs to be continuous to be effective.
| May 11, 2012
Chapter 8 High-Performance Reconstruction and Historic Preservation: Conflict and Opportunity
What historic preservationists and energy-performance advocates can learn from each other.
| May 11, 2012
VFA to acquire Altus Group's Capital Planning division
Strategic move strengthens VFA's facilities capital planning market osition in North America.
| May 11, 2012
Betz promoted to senior vice president for McCarthy’s San Diego Office
He will oversee client relations, estimating, office operations and personnel as well as integration of the company’s scheduling, safety and contracts departments.
| May 11, 2012
CRSI appoints Brace chairman
Stevens also elected to board of directors and vice-chair.
| May 11, 2012
Dempster named to AIA College of Fellows
Altoon Partners’ technical and construction services leader honored for his contributions.
| May 11, 2012
AIA launches education and training portal
New portal to host Contract Documents training, education resources in one convenient place.