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
Building Team | Jun 13, 2022
Partnership rethinks emergency shelters to turn them into sustainable, resilient homes
Holcim and the Norman Foster Foundation have struck a partnership to rethink emergency shelters to turn them into sustainable and resilient homes.
Building Team | Jun 13, 2022
A mixed-used building to rise above Fort Lauderdale, with views of downtown and the ocean
ODA, a New York-based architecture and design studio, recently released renderings of Ombelle, a project including two residential towers in Fort Lauderdale, Fla.
Office Buildings | Jun 13, 2022
San Antonio’s electric utility HQ to transform into a modern office building
In San Antonio, Tex., the former headquarters of CPS Energy, the city’s electric utility, is slated to transform into 100,000 square feet of office and retail space on San Antonio’s famed River Walk.
Cultural Facilities | Jun 10, 2022
After 10 Years, Taiwan’s new Taipei Music Center Reaches the Finish Line
RUR Architecture has finished the Taipei Music Center (TMC), turning a 22-acre (9-hectare) site into a new urban arts district.
Building Technology | Jun 9, 2022
GSA Green Proving Ground program selects six innovative building technologies for evaluation
The U.S. General Services Administration’s (GSA) Green Proving Ground program, in collaboration with the U.S. Department of Energy, has selected six innovative building technologies for evaluation in GSA’s inventory.
University Buildings | Jun 9, 2022
IDEA Factory at U. of Maryland defies gravity
The E.A. Fernandez IDEA Factory at the University of Maryland’s A. James Clark School of Engineering has a gravity-defying form: The seven-story building’s solid upper floors emerge above the lighter, mostly glass base.
Multifamily Housing | Jun 9, 2022
Cityview's Adam Perry on multifamily housing innovation in the Western U.S.
Adam Perry, SVP of Development and Construction Management with developer Cityview, chats with Multifamily Design+Construction Editor Rob Cassidy about the latest design and construction innovations for multifamily housing in the West.
Libraries | Jun 8, 2022
Welcome to the hybrid library
Libraries have grown to become the intellectual and social hubs of campus, where, prior to March 2020, students, researchers, and faculty gathered to collaborate and connect.
Building Team | Jun 8, 2022
Alastair MacGregor to lead WSP USA Property and Buildings Business
Alastair (Aly) MacGregor has been named the executive business line leader for Property and Buildings at WSP USA, one of the nation’s largest engineering and professional services consultancies.
Codes and Standards | Jun 8, 2022
Florida Legislature passes bill requiring stricter condominium inspection
The Florida Legislature recently passed a bill to beef up building inspection requirements for many of the state’s condominiums.