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
| May 18, 2011
Carnegie Hall vaults into the 21st century with a $200 million renovation
Historic Carnegie Hall in New York City is in the midst of a major $200 million renovation that will bring the building up to contemporary standards, increase educational and backstage space, and target LEED Silver.
| May 17, 2011
Redesigning, redefining the grocery shopping experience
The traditional 40,000- to 60,000-sf grocery store is disappearing and much of the change is happening in the city. Urban infill sites and mixed-use projects offer grocers a rare opportunity to repackage themselves into smaller, more efficient, and more convenient retail outlets. And the AEC community will have a hand in developing how these facilities will look and operate.
| May 17, 2011
Architecture billings index fell in April, hurt by tight financing for projects
The architecture billings index, a leading indicator of U.S. construction activity, fell in April, hurt by tight financing for projects. The architecture billings index fell 2.9 points last month to 47.6, a level that indicates declining demand for architecture services, according to the American Institute of Architects.
| May 17, 2011
Sustainability tops the syllabus at net-zero energy school in Texas
Texas-based firm Corgan designed the 152,200-sf Lady Bird Johnson Middle School in Irving, Texas, with the goal of creating the largest net-zero educational facility in the nation, and the first in the state. The facility is expected to use 50% less energy than a standard school.
| May 17, 2011
Gilbane partners with Steel Orca on ultra-green data center
Gilbane, along with Crabtree, Rohrbaugh & Associates, has been selected to partner with Steel Orca to design and build a 300,000-sf data center in Bucks County, Pa., that will be powered entirely through renewable energy sources--gas, solar, fuel cells, wind and geo-thermal. Completion is scheduled for 2013.
| May 17, 2011
Should Washington, D.C., allow taller buildings?
Suggestions are being made that Washington revise its restrictions on building heights. Architect Roger Lewis, who raised the topic in the Washington Post a few weeks ago, argues for a modest relaxation of the height limits, and thinks that concerns about ruining the city’s aesthetics are unfounded.
| May 17, 2011
The New Orleans master plan
At an afternoon panel during last week's AIA National Conference in New Orleans, Goody Clancy Principal David Dixon and Manning Principal W. Raymond Manning shared their experiences creating the New Orleans Master Plan, a document that sets a new course for the city, from land use and transportation planning to environmental protection.
| May 17, 2011
Do these buildings look like buffalo to you?
It’s hard to contemplate winter now that we’re mid-spring, but when the seasons change, ice skaters in Winnipeg will be able to keep warm in plywood shelters designed by Patkau Architects. The designers created temporary shelters inspired by animal behavior—specifically, buffalo bracing against the wind. Check them out.
| May 16, 2011
USGBC and AIA unveil report for greening K-12 schools
The U.S. Green Building Council and the American Institute of Architects unveiled "Local Leaders in Sustainability: A Special Report from Sundance," which outlines a five-point national action plan that mayors and local leaders can use as a framework to develop and implement green schools initiatives.
