Construction employment increased by 22,000 jobs between November and December as nonresidential construction firms added workers for the fourth month in a row while residential construction employment slipped, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said the new employment figures are consistent with the results of a new outlook survey they will be releasing on January 12.
“Nonresidential contractors are increasingly busy and are eager to hire even more workers,” said Ken Simonson, the association’s chief economist. “But the low rate of unemployment and record job openings in construction show how difficult it is bringing enough workers on board.”
Simonson noted that the unemployment rate among former construction workers in December was 5.0%, which tied the lowest December rate since at least 2000 and was down from 9.6% a year earlier. He added that industry job openings totaled 345,000 at the end of November, an all-time high for November data.
Construction employment in December totaled 7,560,000, an increase of 22,000 for the month and 160,000 or 2.2% for the year. However, industry employment still trails the pre-pandemic peak, set in February 2020, by 88,000 positions.
Nonresidential construction firms added 27,000 employees in December, following a pickup of 25,700 in November. The category comprises nonresidential building contractors, with a gain of 3,700 employees; specialty trade contractors, with 12,900 more workers than in November; and heavy and civil engineering construction, which added 10,400 employees. But nonresidential employment remains 169,000 below the February 2020 level. The sector has regained only 74% of the jobs lost at the outset of the pandemic.
Residential construction employment dipped for only the second time in 2021, by 4,100 employees in December. Residential building contractors, such as homebuilders and general contractors that concentrate on multifamily construction, added 700 workers during the month, while residential specialty trade contractors shed 4,800 employees. Residential employment in December remained 82,000 above the February 2020 mark.
Association officials said the jobs figures reflect the industry optimism indicated in the annual Outlook survey they will be releasing during a virtual media briefing on Wednesday, January 12. But they cautioned that labor shortages continue to challenge contractors who are struggling to hire enough workers to keep pace with demand.
“The industry appears well poised for a strong recovery in 2022, but there are certainly clear challenges, including labor shortages, that could undermine construction this year,” said Stephen E. Sandherr, the association’s chief executive officer.
View the construction employment table.
Related Stories
Market Data | Oct 17, 2022
Calling all AEC professionals! BD+C editors need your expertise for our 2023 market forecast survey
The BD+C editorial team needs your help with an important research project. We are conducting research to understand the current state of the U.S. design and construction industry.
Market Data | Oct 14, 2022
ABC’s Construction Backlog Indicator Jumps in September; Contractor Confidence Remains Steady
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5.
Market Data | Oct 12, 2022
ABC: Construction Input Prices Inched Down in September; Up 41% Since February 2020
Construction input prices dipped 0.1% in September 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.
Laboratories | Oct 5, 2022
Bigger is better for a maturing life sciences sector
CRB's latest report predicts more diversification and vertical integration in research and production.
Market Data | Aug 25, 2022
‘Disruptions’ will moderate construction spending through next year
JLL’s latest outlook predicts continued pricing volatility due to shortages in materials and labor
Market Data | Aug 2, 2022
Nonresidential construction spending falls 0.5% in June, says ABC
National nonresidential construction spending was down by 0.5% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Jul 28, 2022
The latest Beck Group report sees earlier project collaboration as one way out of the inflation/supply chain malaise
In the first six months of 2022, quarter-to-quarter inflation for construction materials showed signs of easing, but only slightly.
Hotel Facilities | Jul 28, 2022
As travel returns, U.S. hotel construction pipeline growth follows
According to the recently released United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. construction pipeline stands at 5,220 projects/621,268 rooms at the close of 2022’s second quarter, up 9% Year-Over-Year (YOY) by projects and 4% YOY by rooms.
Codes and Standards | Jul 22, 2022
Hurricane-resistant construction may be greatly undervalued
New research led by an MIT graduate student at the school’s Concrete Sustainability Hub suggests that the value of buildings constructed to resist wind damage in hurricanes may be significantly underestimated.
Market Data | Jul 21, 2022
Architecture Billings Index continues to stabilize but remains healthy
Architecture firms reported increasing demand for design services in June, according to a new report today from The American Institute of Architects (AIA).
