Construction employment stalled in June as more former construction workers left the industry, according to an analysis of new federal data released by the Associated General Contractors of America. The lack of current job openings, along with the departure of experienced workers, suggests a potential skilled-labor shortage may be developing, construction association officials warned.
“Employment in the construction industry has fluctuated within a very narrow range—1% above or below the June level of 5.5 million—for more than two years now,” said Ken Simonson, the association’s chief economist. While the latest figure was 14,000 higher than one year earlier, the June 2012 total was just 2,000 higher than in May and in June 2010. “Construction employment has essentially been stagnant for much of the past two years.”
Meanwhile, the unemployment rate for former construction workers fell to 12.8%, the lowest June rate since 2008 and much better than the 15.6% rate in June 2011 or the 20.1% rate in June 2010, Simonson noted. He added that over the past two years nearly 750,000 experienced workers have either found jobs in other industries, returned to school, retired or otherwise left the workforce. “It will be hard for construction firms to get those skilled workers back when demand picks back up.”
There was little difference among construction segments in terms of recent job gains or losses, Simonson noted. Residential construction added 1,700 total jobs in June and 8,900 (0.4%) over 12 months. Nonresidential construction firms lost 600 jobs in June but added 4,300 (0.1%) over 12 months.
Within the residential segment, residential specialty trade contractors added 7,600 jobs for the month and 14,100 (1.0%) over the past year, reflecting ongoing strength in multifamily construction. In contrast, residential builders—mostly single-family homebuilders—lost 5,900 positions in June and 5,200 (-0.9%) over 12 months.
Nonresidential job gains for the year were concentrated among nonresidential building contractors, which lost 1,000 jobs in the latest month but added 4,300 (0.7%) over 12 months. Heavy and civil engineering construction firms shed 2,000 jobs in June and 1,800 (-0.2%) in the past year. Nonresidential specialty trade contractors boosted employment by 2,400 since May but only 1,800 (0.1%) since June 2012.
Association officials noted that one bright spot for the industry was the 27-month highway and transit bill the president is signing into law today. They said the legislation includes many significant reforms that will allow more existing transportation funds to be invested in highway and transit construction projects, as opposed to unrelated programs.
“This measure will certainly help staunch the decline in construction employment among highway and transportation builders,” said Stephen E. Sandherr, the association’s chief executive officer. “Congress understands that investing in infrastructure is one of the best ways to support growth within the private sector.” +
Related Stories
Sponsored | | Oct 23, 2014
From slots to public safety: Abandoned Detroit casino transformed into LEED-certified public safety headquarters
First constructed as an office for the Internal Revenue Service, the city's new public safety headquarters had more recently served as a temporary home for the MGM Casino. SPONSORED CONTENT
| Oct 23, 2014
Santiago Calatrava-designed church breaks ground in Lower Manhattan
Saturday marked the public "ground blessing" ceremony for the Saint Nicholas National Shrine, the Greek Orthodox Church destroyed on 9/11 by the collapse of the World Trade Center towers.
| Oct 23, 2014
Prehistory museum's slanted roof mimics archaeological excavation [slideshow]
Mimicking the unearthing of archaeological sites, Henning Larsen Architects' recently opened Moesgaard Museum in Denmark has a planted roof that slopes upward out of the landscape.
| Oct 23, 2014
China's 'weird' buildings: President Xi Jinping wants no more of them
During a literary symposium in Beijing, Chinese President Xi Jinping urged architects, authors, actors, and other artists to produce work with "artistic and moral value."
| Oct 23, 2014
Architecture Billings Index shows strong demand for institutional, mixed-practice design
AIA reported the September ABI score was 55.2, up from a mark of 53.0 in August. This score reflects an increase in design activity.
| Oct 22, 2014
Customization is the key in tomorrow's workplace
The importance of mobility, flexibility, and sustainability in the world of corporate design are already well-established. A newer trend that’s gaining deserved attention is customizability, and how it will look in the coming years, writes GS&P's Leith Oatman.
| Oct 21, 2014
Passive House concept gains momentum in apartment design
Passive House, an ultra-efficient building standard that originated in Germany, has been used for single-family homes since its inception in 1990. Only recently has the concept made its way into the U.S. commercial buildings market.
| Oct 21, 2014
Hartford Hospital plans $150 million expansion for Bone and Joint Institute
The bright-white structures will feature a curvilinear form, mimicking bones and ligament.
| Oct 21, 2014
Norman Foster, Zaha Hadid release plans for resorts in Nanjing and Wuhan, China
Jumeirah Group, a hotel group forming a part of investment group Dubai Holding, has chosen Zaha Hadid and Norman Foster to design two of three of its proposed resorts in Nanjing, Wuhan, and Haikou.
| Oct 21, 2014
Inside LEED v4: The view from the MEP engineering seats
Much of the spirited discussion around LEED v4 has been centered on the Materials & Resources Credit. At least one voice in the wilderness is shouting for greater attention to another huge change in LEED: the shift to ASHRAE 90.1-2010 as the new reference standard for Energy & Atmosphere prerequisites and credits.
