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
| Dec 12, 2011
AIA Chicago announces Skidmore, Owings & Merrill as 2011 Firm of the Year
SOM has been a leader in the research and development of specialized technologies, new processes and innovative ideas, many of which have had a palpable and lasting impact on the design profession and the physical environment.
| Dec 12, 2011
Skanska to expand and renovate hospital in Georgia for $103 Million
The expansion includes a four-story, 17,500 square meters clinical services building and a five-story, 15,700 square meters, medical office building. Skanska will also renovate the main hospital.
| Dec 12, 2011
CRSI design awards deadline extended to December 31
The final deadline is extended until December 31st, with judging shortly thereafter at the World of Concrete.
| Dec 12, 2011
Mojo Stumer takes top honors at AIA Long Island Design Awards
Firm's TriBeCa Loft wins "Archi" for interior design.
| Dec 10, 2011
10 Great Solutions
The editors of Building Design+Construction present 10 “Great Solutions” that highlight innovative technology and products that can be used to address some of the many problems Building Teams face in their day-to-day work. Readers are encouraged to submit entries for Great Solutions; if we use yours, you’ll receive a $25 gift certificate. Look for more Great Solutions in 2012 at: www.bdcnetwork.com/greatsolutions/2012.
| Dec 10, 2011
Energy performance starts at the building envelope
Rainscreen system installed at the west building expansion of the University of Arizona’s Meinel Optical Sciences Center in Tucson, with its folded glass wall and copper-paneled, breathable cladding over precast concrete.
| Dec 10, 2011
Turning Balconies Outside In
Operable glass balcony glazing systems provide solution to increase usable space in residential and commercial structures.
| Dec 10, 2011
BIM tools to make your project easier to manage
Two innovations—program manager Gafcon’s SharePoint360 project management platform and a new BIM “wall creator” add-on developed by ClarkDietrich Building Systems for use with the Revit BIM platform and construction consultant—show how fabricators and owner’s reps are stepping in to fill the gaps between construction and design that can typically be exposed by working with a 3D model.