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
Education Facilities | Jul 26, 2022
Malibu High School gets a new building that balances environment with education
In Malibu, Calif., a city known for beaches, surf, and sun, HMC Architects wanted to give Malibu High School a new building that harmonizes environment and education.
| Jul 26, 2022
Better design with a “brain break”
During the design process, there aren’t necessarily opportunities to implement “brain breaks,” brief moments to take a purposeful pause from the task at hand and refocus before returning to work.
Building Team | Jul 25, 2022
First Ismaili Center in the U.S. combines Islamic design with Texas influences
Construction has begun on the first Ismaili Center in the U.S. in Houston.
Codes and Standards | Jul 22, 2022
Office developers aim for zero carbon without offsets
As companies reassess their office needs in the wake of the pandemic, a new arms race to deliver net zero carbon space without the need for offsets is taking place in London, according to a recent Bloomberg report.
Codes and Standards | Jul 22, 2022
Hurricane-resistant construction may be greatly undervalued
New research led by an MIT graduate student at the school’s Concrete Sustainability Hub suggests that the value of buildings constructed to resist wind damage in hurricanes may be significantly underestimated.
School Construction | Jul 22, 2022
School integrating conventional medicine with holistic principles blends building and landscape
Design of the new Alice L. Walton School of Medicine in Bentonville, Ark., aims to blend the building and landscape, creating connections with the surrounding woodlands and the Ozark Mountains.
Market Data | Jul 21, 2022
Architecture Billings Index continues to stabilize but remains healthy
Architecture firms reported increasing demand for design services in June, according to a new report today from The American Institute of Architects (AIA).
Market Data | Jul 21, 2022
Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023
Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA).
Mixed-Use | Jul 21, 2022
Former Los Angeles Macy’s store converted to mixed-use commercial space
Work to convert the former Westside Pavilion Macy's department store in West Los Angeles to a mixed-use commercial campus recently completed.
Building Team | Jul 20, 2022
San Francisco overtakes Tokyo as the world’s most expensive city for construction
San Francisco has overtaken Tokyo as the world’s most expensive city for construction, according to a new report from Turner & Townsend.