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
| Jul 23, 2014
Top Healthcare Sector Architecture Firms [2014 Giants 300 Report]
HDR, Stantec, and HKS top Building Design+Construction's 2014 ranking of the largest healthcare architecture and architecture/engineering firms in the U.S.
| Jul 23, 2014
Tallest skyscraper in South Korea now open
The Northeast Asia Trade Tower stands at 308 meters and is the focal point of the Songdo International Business District, a new 310-hectare city built on reclaimed land.
| Jul 23, 2014
Architecture Billings Index up nearly a point in June
AIA reported the June ABI score was 53.5, up from a mark of 52.6 in May.
| Jul 22, 2014
L.A.'s tallest tower to get observation deck
U.S. Bank Tower, as part of a series of improvements, will be getting an observation deck and restaurant at its top.
| Jul 22, 2014
Herzog & de Meuron unveil curvy concrete condo in Manhattan
Herzog & de Meuron have released renderings of their new $250 million New York building, a 12-story condominium with 88 luxury apartments.
| Jul 21, 2014
Narrowing the field: Stirling Prize shortlist announced
The list includes first-time nominees Mecanoo and Renzo Piano Building Workshop, as well as previous winners Zaha Hadid Architects and Feilden Clegg Bradley Studios.
| Jul 21, 2014
Designing the process of leadership transition
Transition planning can be one of the more complex challenges that firms face. Effective plans begin by determining the gap between a firm’s current state and the future it envisions for itself. SPONSORED CONTENT
| Jul 21, 2014
16 utility questions to answer during your building project
We need electricity to power our building projects, along with water and gas and a faultless sanitation system. That’s what we think about when we think about utility requirements for our building project, but are we missing something? SPONSORED CONTENT
| Jul 21, 2014
Commercial real estate development growing at strongest pace since recovery began: NAIOP report
Industrial, warehousing, office, and retail sectors see strong gains; Texas leads the nation in construction-value stats.
| Jul 21, 2014
Economists ponder uneven recovery, weigh benefits of big infrastructure [2014 Giants 300 Report]
According to expert forecasters, multifamily projects, the Panama Canal expansion, and the petroleum industry’s “shale gale” could be saving graces for commercial AEC firms seeking growth opportunities in an economy that’s provided its share of recent disappointments.
