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
Energy-Efficient Design | Jul 19, 2022
All is not lost: 3 ways architects can respond to the Supreme Court’s EPA ruling
The U.S. Supreme Court’s ruling to limit the Environmental Protection Agency’s power to regulate greenhouse gas (GHG) emissions from power plants dealt a significant blow to our ability to fight the climate crisis with federal policy.
Office Buildings | Jul 19, 2022
Austin adaptive reuse project transforms warehouse site into indoor-outdoor creative office building
Fifth and Tillery, an adaptive reuse project, has revitalized a post-industrial site in East Austin, Texas.
Women in Design+Construction | Jul 18, 2022
Registration is open for BD+C's 2022 Women in Design+Construction Conference
Join your AEC industry peers in Chicago, September 26-28, 2022, for the 7th annual Women in Design+Construction Conference, hosted by the BD+C editorial team and the 35-person WIDC Advisory Board.
Airports | Jul 18, 2022
FAA will award nearly $1 billion for airport projects
The Federal Aviation Administration (FAA) will award nearly $1 billion to 85 airports of all sizes across the country to improve terminals.
Building Team | Jul 18, 2022
Understanding the growing design-build market
FMI’s new analysis of the design-build market forecast for the next fives years shows that this delivery method will continue to grow, despite challenges from the COVID-19 pandemic.
Mixed-Use | Jul 18, 2022
Mixed-use development outside Prague uses a material made from leftover bricks
Outside Prague, the Sugar Factory, a mixed-used residential development with public space, marks the largest project to use the sustainable material Rebetong.
Building Team | Jul 15, 2022
ABC: Construction materials prices increased in June, up 20% from a year ago
Construction input prices increased 1.9% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.
Arenas | Jul 15, 2022
U. of Oregon renovation aims for ‘finest track and field facility in the world’
The renovation of the University of Oregon’s Hayward Field had the goal of creating the “finest track and field facility in the world.”
Building Team | Jul 14, 2022
ABC’s construction backlog inches lower in June; Contractor confidence falters
Associated Builders and Contractors reports today that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21 to July 5.
Sustainable Development | Jul 14, 2022
Designing for climate change and inclusion, with CBT Architects' Kishore Varanasi and Devanshi Purohit
Climate change is having a dramatic impact on urban design, in terms of planning, materials, occupant use, location, and the long-term effect of buildings on the environment. Joining BD+C's John Caulfield to discuss this topic are two experts from the Boston-based CBT Architects: Kishore Varanasi, a Principal and director of urban design; and Devanshi Purohit, an Associate Principal.