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
| Mar 19, 2012
Smith Carter joins forces with Genivar
Smith Carter has a workforce of some 190 employees and designs complex buildings in challenging environments.
| Mar 19, 2012
HKS Selected for Baylor Medical Center at Waxahachie
Baylor Medical Center at Waxahachiewill incorporate advanced technology including telemedicine, digital imaging, remote patient monitoring, electronic medical records and computer patient records.
| Mar 19, 2012
Mixed-use project redefines Midtown District in Plantation, Fla.
Stiles Construction is building the residential complex, which is one of Broward County’s first multifamily rental communities designed to achieve LEED certification from the USGBC.
| Mar 16, 2012
Temporary fix to CityCenter's Harmon would cost $2 million, contractor says
By contrast, CityCenter half-owner and developer MGM Resorts International determined last year that the Harmon would collapse in a strong quake and can't be fixed in an economical way. It favors implosion at a cost of $30 million.
| Mar 16, 2012
Work on Oxnard, Calif. shopping center resumes after a three-year hiatus
Stalled since 2009, developers of the Collection at RiverPark decided to restart construction on the outdoor mall.
| Mar 16, 2012
Stego embarks on HPD Pilot Program
Vapor barrier manufacturer strives to provide better green choices to designers and builders.
| Mar 16, 2012
Marvin Windows and Doors accepting entries for fourth-annual myMarvin Architect’s Challenge
Architects in U.S. and abroad offered the chance to showcase their very best work.
| Mar 14, 2012
Hearing to decide fate of unfinished Harmon in Las Vegas under way
The testimony began with CityCenter consulting engineer Chukwuma Ekwueme methodically showing photo after photo of parts of the Harmon, where he and his team had chipped away the concrete pillars and beams to examine the steel reinforcing bars inside.
| Mar 14, 2012
Firestone names 2012 Master Contractor Award Winners
Annual award acknowledges industry’s top roofing professionals.