Construction employment increased in 256 out of 358 metro areas between April 2017 and April 2018, declined in 63 and was unchanged in 39, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that the data showed a continuation of strong labor demand amid shortages of qualified workers.
"Industry demand is still showing strength, as construction employment reached a new high in 54 metro areas," said Ken Simonson, the association's chief economist. "However, despite these signs, further growth in the industry may increasingly be stymied by a lack of qualified workers."
Dallas-Plano-Irving, Texas added the most construction jobs during the past year (12,400 jobs, 9%), followed by Houston-The Woodlands-Sugar Land, Texas (12,200 jobs, 6%); Phoenix-Mesa-Scottsdale, Ariz. (11,000 jobs, 10%); Midland, Texas (8,000 jobs, 31%) and Las Vegas-Henderson-Paradise, Nevada (7,700 jobs, 13%). The largest percentage gains occurred in the Midland, Texas metro area, followed by Merced, Calif. (29%, 700 jobs); New Bedford, Mass. (20%, 500 jobs); Atlantic City-Hammonton, N.J. (19%, 1,000 jobs) and Weirton-Steubenville, W.Va.-Ohio (19%, 300 jobs).
The largest job losses from April 2017 to April 2018 were in St. Louis, Mo.-Ill. (-3,100 jobs, -5%), followed by Middlesex-Monmouth-Ocean, N.J. (-2,900 jobs, -7%); Montgomery County-Bucks County-Chester County, Penn. (-2,800 jobs, -5%); Minneapolis-St. Paul-Bloomington, Minn.-Wis. (-2,400 jobs, -3%) and Columbia, S.C. (-2,200 jobs, -11%). The largest percentage decreases for the year were in Bloomington, Ill. (-16%, -500 jobs), followed by Bismarck, N.D. (-15%, -800 jobs), Auburn-Opelika, Ala. (-14%, -400 jobs); Battle Creek, Mich. (-12%, -200 jobs); and Columbia, S.C.
Association officials said that despite these widespread employment increases, many contractors report difficulty in finding qualified workers. With the national unemployment rate at a 17-year low and many metro unemployment rates at new record lows for April, finding workers is not expected to get easier in the near future. They added that education and training initiatives are the best way to increase the pool of skilled workers, creating a new generation of carpenters, electricians, and others, while giving Americans access to highly rewarding work.
"The good news is that the strong economy is driving demand for many types of construction projects," said Stephen E. Sandherr, the association's chief executive officer. "All that economic activity means that there are fewer, qualified, workers available for construction firms to hire to keep pace with demand."
Related Stories
Hotel Facilities | Jul 27, 2023
U.S. hotel construction pipeline remains steady with 5,572 projects in the works
The hotel construction pipeline grew incrementally in Q2 2023 as developers and franchise companies push through short-term challenges while envisioning long-term prospects, according to Lodging Econometrics.
Hotel Facilities | Jul 26, 2023
Hospitality building construction costs for 2023
Data from Gordian breaks down the average cost per square foot for 15-story hotels, restaurants, fast food restaurants, and movie theaters across 10 U.S. cities: Boston, Chicago, Las Vegas, Los Angeles, Miami, New Orleans, New York, Phoenix, Seattle, and Washington, D.C.
Market Data | Jul 24, 2023
Leading economists call for 2% increase in building construction spending in 2024
Following a 19.7% surge in spending for commercial, institutional, and industrial buildings in 2023, leading construction industry economists expect spending growth to come back to earth in 2024, according to the July 2023 AIA Consensus Construction Forecast Panel.
Contractors | Jul 13, 2023
Construction input prices remain unchanged in June, inflation slowing
Construction input prices remained unchanged 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. Nonresidential construction input prices were also unchanged for the month.
Contractors | Jul 11, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of June 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in June 2023, according to an ABC member survey conducted June 20 to July 5. The reading is unchanged from June 2022.
Market Data | Jul 5, 2023
Nonresidential construction spending decreased in May, its first drop in nearly a year
National nonresidential construction spending decreased 0.2% in May, 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 $1.06 trillion.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Contractors | Jun 13, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
Industry Research | Jun 13, 2023
Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility
The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.
