Construction employment increased by 20,000 jobs in December and by 151,000, or 2.0 percent, in all of 2019, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that its recent survey found three out of four contractors expect to keep adding workers in 2020, but even more respondents found it difficult to fill positions in 2019, and a majority anticipate it will be as hard or harder to do so in 2020. Officials called on the federal government to increase funding for career and technical education and expand employment-based immigration for workers whose skills are in short supply.
“More than four out of five respondents to our survey said they were having a hard time filling salaried or hourly craft positions in 2019,” said Ken Simonson, the association’s chief economist. “Nearly two-thirds of the firms say that hiring will be hard or harder this year. In light of those staffing challenges, costs have been higher than anticipated for 44 percent of respondents and projects took longer than anticipated for 40 percent of them. As a result, 41 percent of respondents have put higher prices into their bids or contracts and 23 percent have put in longer completion times.”
Simonson observed that both the number of unemployed workers with recent construction experience (489,000) and the unemployment rate for such workers (5.0 percent) were the lowest ever for December in the 20-year history of those series. He said these figures support the survey’s finding that experienced construction workers are hard to find.
“Contractors are confident that there will be plenty of projects in 2020,” Simonson added. “Our survey found that for each of 13 project types, more contractors expect an increase in 2020 than a decrease in the dollar value of projects they compete for.”
Association officials said the optimistic outlook for projects depends on having an adequate supply of qualified workers. The officials urged the Trump administration and Congress to double funding for career and technical education over the next five years, pass the JOBS Act to expand opportunities for students seeking alternatives to college, and enable employers who demonstrate an unfilled need for workers to bring them in from outside the U.S.
“Construction can play a major role in sustaining economic growth, but only if the industry has an expanding supply of both qualified workers and new entrants to replace retirees,” said Stephen E. Sandherr, the association’s chief executive officer. “Construction firms are working hard to overcome labor shortages, but federal officials must do their part by adequately funding career and technical education, making it easier for students to qualify for loans for short-term technical education programs and putting in place needed immigration reforms.”
View the 2020 Construction Outlook Survey.
Related Stories
Market Data | Nov 2, 2018
Nonresidential spending retains momentum in September, up 8.9% year over year
Total nonresidential spending stood at $767.1 billion on a seasonally adjusted, annualized rate in September.
Market Data | Oct 30, 2018
Construction projects planned and ongoing by world’s megacities valued at $4.2trn
The report states that Dubai tops the list with total project values amounting to US$374.2bn.
Market Data | Oct 26, 2018
Nonresidential fixed investment returns to earth in Q3
Despite the broader economic growth, fixed investment inched 0.3% lower in the third quarter.
Market Data | Oct 24, 2018
Architecture firm billings slow but remain positive in September
Billings growth slows but is stable across sectors.
Market Data | Oct 19, 2018
New York’s five-year construction spending boom could be slowing over the next two years
Nonresidential building could still add more than 90 million sf through 2020.
Market Data | Oct 8, 2018
Global construction set to rise to US$12.9 trillion by 2022, driven by Asia Pacific, Africa and the Middle East
The pace of global construction growth is set to improve slightly to 3.7% between 2019 and 2020.
Market Data | Sep 25, 2018
Contractors remain upbeat in Q2, according to ABC’s latest Construction Confidence Index
More than three in four construction firms expect that sales will continue to rise over the next six months, while three in five expect higher profit margins.
Market Data | Sep 24, 2018
Hotel construction pipeline reaches record highs
There are 5,988 projects/1,133,017 rooms currently under construction worldwide.
Market Data | Sep 21, 2018
JLL fit out report portrays a hot but tenant-favorable office market
This year’s analysis draws from 2,800 projects.
Market Data | Sep 21, 2018
Mid-year forecast: No end in sight for growth cycle
The AIA Consensus Construction Forecast is projecting 4.7% growth in nonresidential construction spending in 2018.