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
| Jan 3, 2012
New Chicago hospital prepared for pandemic, CBR terror threat
At a cost of $654 million, the 14-story, 830,000-sf medical center, designed by a Perkins+Will team led by design principal Ralph Johnson, FAIA, LEED AP, is distinguished in its ability to handle disasters.
| Jan 3, 2012
BIM: not just for new buildings
Ohio State University Medical Center is converting 55 Medical Center buildings from AutoCAD to BIM to improve quality and speed of decision making related to facility use, renovations, maintenance, and more.
| Jan 3, 2012
New SJI Rule on Steel Joists
A new rule from the Steel Joist Institute clarifies when local reinforcement of joists is required for chord loads away from panel points. SJI members offer guidance about how and when to specify loads.
| Jan 3, 2012
AIA Course: New Developments in Concrete Construction
Earn 1.0 AIA/CES learning units by studying this article and successfully completing the online exam.
| Jan 3, 2012
The Value of Historic Paint Investigations
An expert conservator provides a three-step approach to determining a historic building’s “period of significance”—and how to restore its painted surfaces to the correct patterns and colors.
| Jan 3, 2012
28th Annual Reconstruction Awards: Bringing Hope to Cancer Patients
A gothic-style structure is reconstructed into comfortable, modern patient residence facility for the American Cancer Society.
| Jan 3, 2012
Art Gensler: Still Making a Difference for Clients Every Day
After running what is today the largest architecture firm in the world for more than four decades, M. Arthur Gensler, Jr., FAIA, FIIDA, RIBA, is content to be just another employee at the firm that bears his name.
| Jan 3, 2012
Gensler: 'The One Firm Firm'
The giant architecture firm succeeds by giving each of its more than 3,000 employees the opportunity for career growth and professional leadership.
| Jan 3, 2012
Rental Renaissance, The Rebirth of the Apartment Market
Across much of the U.S., apartment rents are rising, vacancy rates are falling. In just about every major urban area, new multifamily rental projects and major renovations are coming online. It may be too soon to pronounce the rental market fully recovered, but the trend is promising.
| Dec 29, 2011
OSHA enforcing new fall hazard standards
OSHA is enforcing its new fall protection standards, as evidenced by a recent crackdown in New York.