Construction employers added 39,000 jobs in January and 308,000 over the past year, reaching the highest employment total since February 2009, as the sector's unemployment rate fell to 9.8%, according to an analysis by the Associated General Contractors of America. Association officials said the job gains come as most construction firms report plans to expand headcount this year, but worry about growing shortages of qualified workers.
"Contractors have stayed busy this winter and expect to keep hiring through 2015-if they can find the workers they need," said Ken Simonson, the association's chief economist. "The list of projects is growing in most states and most nonresidential segments, in addition to continuing strong demand for apartment buildings."
Construction employment totaled 6,314,000 in January, the highest level in nearly six years, with a 12-month gain of 308,000 jobs or 5.1%, Simonson noted. Residential building and specialty trade contractors added a combined 20,100 employees since December and 162,400 (7.2%) over 12 months. Nonresidential contractors-building, specialty trade, and heavy and civil engineering construction firms-hired a net of 18,600 workers for the month and 145,600 (3.9%) since January 2014.
The number of workers who said they looked for work in the past month and had last worked in construction fell from 1,045,000 a year earlier to 811,000-the lowest January mark since January 2000. Although winter conditions typically result in a high January unemployment rate for construction, the 9.8% unemployment rate for these workers was the lowest January rate since January 2007 and represented a steep drop from a year earlier, when the rate was 12.3%.
"The combination of rapidly rising employment, good prospects for 2015, and a depleted pool of unemployed workers with construction experience means contractors may have a hard time filling jobs with the workers they need in coming months," Simonson said. "Worker availability challenges have replaced a lack of projects as the biggest worry for many contractors."
Association officials noted that the new construction employment data is consistent with its recently-released Construction Hiring and Business Outlook, where 80% of construction firms reported they plan to expand head counts in 2015. But they cautioned that 87% of firms report having a hard time finding qualified workers and urged officials to act on the measured outlined in the association's Workforce Development Plan.
"Construction firms appear ready to add jobs this year at the fastest rate in a decade," said Stephen E. Sandherr, the association's chief executive officer. "But those employment gains depend on finding new ways to expose and prepare high school students for high-paying careers in construction."
Related Stories
Giants 400 | Oct 2, 2023
Top 50 Data Center Construction Firms for 2023
Turner Construction, Holder Construction, HITT Contracting, DPR Construction, and Fortis Construction top BD+C's ranking of the nation's largest data center sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.09 trillion.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Contractors | Sep 25, 2023
Balfour Beatty expands its operations in Tampa Bay, Fla.
Balfour Beatty is expanding its leading construction operations into the Tampa Bay area offering specialized and expert services to deliver premier projects along Florida’s Gulf Coast.
Resiliency | Sep 25, 2023
National Institute of Building Sciences, Fannie Mae release roadmap for resilience
The National Institute of Building Sciences and Fannie Mae have released the Resilience Incentivization Roadmap 2.0. The document is intended to guide mitigation investment to prepare for and respond to natural disasters.
Codes and Standards | Sep 25, 2023
Lendlease launches new protocol for Scope 3 carbon reduction
Lendlease unveiled a new protocol to monitor, measure, and disclose Scope 3 carbon emissions and called on built environment industry leaders to tackle this challenge.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Giants 400 | Sep 20, 2023
Top 80 Hospitality Facility Construction Firms for 2023
Suffolk Construction, The Yates Companies, STO Building Group, and PCL Construction Enterprises top BD+C's ranking of the nation's largest hospitality facilities sector contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all hospitality facilities work, including casinos, hotels, and resorts.
Giants 400 | Sep 18, 2023
Top 120 Office Building Construction Firms for 2023
Turner Construction, STO Building Group, AECOM, and DPR Construction top BD+C's ranking of the nation's largest office building sector contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all office building work, including core and shell projects and workplace/interior fitouts.