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
| Aug 11, 2010
Draft NIST report on Cowboys practice facility collapse released for public comment
A fabric-covered, steel frame practice facility owned by the National Football Leagueās Dallas Cowboys collapsed under wind loads significantly less than those required under applicable design standards, according to a report released today for public comment by the Commerce Department's National Institute of Standards and Technology (NIST).
| Aug 11, 2010
USGBC honors Brad Pitt's Make It Right New Orleans as the ālargest and greenest single-family community in the worldā
U.S. Green Building Council President, CEO and Founding Chair Rick Fedrizzi today declared that the neighborhood being built by Make It Right New Orleans, the post-Katrina housing initiative launched by actor Brad Pitt, is the ālargest and greenest community of single-family homes in the worldā at the annual Clinton Global Initiative meeting in New York.
| Aug 11, 2010
AIA report estimates up to 270,000 construction industry jobs could be created if the American Clean Energy Security Act is passed
With the encouragement of Senate majority leader Harry Reid (D-NV), the American Institute of Architects (AIA) conducted a study to determine how many jobs in the design and construction industry could be created if the American Clean Energy Security Act (H.R. 2454; also known as the Waxman-Markey Bill) is enacted.
| Aug 11, 2010
Nation's first set of green building model codes and standards announced
The International Code Council (ICC), the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE), the U.S. Green Building Council (USGBC), and the Illuminating Engineering Society of North America (IES) announce the launch of the International Green Construction Code (IGCC), representing the merger of two national efforts to develop adoptable and enforceable green building codes.
| Aug 11, 2010
More construction firms likely to perform stimulus-funded work in 2010 as funding expands beyond transportation programs
Stimulus funded infrastructure projects are saving and creating more direct construction jobs than initially estimated, according to a new analysis of federal data released today by the Associated General Contractors of America. The analysis also found that more contractors are likely to perform stimulus funded work this year as work starts on many of the non-transportation projects funded in the initial package.
| Aug 11, 2010
Broadway-style theater headed to Kentucky
One of Kentucky's largest performing arts venues should open in 2011āthat's when construction is expected to wrap up on Eastern Kentucky University's Business & Technology Center for Performing Arts. The 93,000-sf Broadway-caliber theater will seat 2,000 audience members and have a 60Ć24-foot stage proscenium and a fly loft.
