The construction industry lost 3,000 jobs between July and August as ongoing declines in nonresidential segments offset a pickup among residential building and remodeling firms, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said their newly released survey shows many contractors are eager to hire but are encountering a lack of qualified applicants and supply-chain delays that are holding back nonresidential employment gains.
“Today’s figures show that nonresidential building and infrastructure contractors are having a hard time recovering from the impact of the pandemic on demand for structures,” said Ken Simonson, the association’s chief economist. “At the same time, our survey finds many contractors have job openings but are experiencing a lack of qualified applicants, shortages of materials and long delivery delays.”
Construction employment in August totaled 7,416,000, a drop of 3,000 from July. Employment among nonresidential firms—comprising heavy and civil engineering construction firms, along with nonresidential building and specialty trade contractors—shrank for the fifth month in a row, by 20,300. In contrast, homebuilders and residential specialty trade contractors added 17,400 workers, the fourth-straight gain.
Despite the job losses for nonresidential construction firms, the association’s annual workforce survey, conducted with Autodesk, found many of its members—nonresidential and multifamily contractors—have unfilled job openings. Ninety percent of the more than 2,100 firms that responded had openings for hourly craft workers, while 62% had openings for salaried employees. Overwhelming percentages of firms with openings reported having a hard time filling positions, including 89% of the companies seeking craft workers and 86% of those looking for salaried employees.
Contractors are facing multiple challenges. Seventy-two percent of survey respondents reported that available job candidates were not qualified. Three-quarters of the firms reported projects were delayed due to longer lead times or shortages of materials, while 57% reported delivery delays.
Association officials called on officials in Washington to address both immediate and long-term needs for the construction industry. They urged lawmakers to finish work on the Senate-passed infrastructure bill and provide more funding for career and technical education programs that will attract and prepare more people for high-paying careers in construction.
“Contractors are eager to hire more workers but they need Washington officials to make sure there is enough funding for vitally needed infrastructure to justify hiring,” said Stephen E. Sandherr, the association’s chief executive officer. “In addition, more federal money should be going into preparing workers to execute these projects.”
Click here for the association’s survey results.
Related Stories
Architects | Jan 23, 2023
PSMJ report: The fed’s wrecking ball is hitting the private construction sector
Inflation may be starting to show some signs of cooling, but the Fed isn’t backing down anytime soon and the impact is becoming more noticeable in the architecture, engineering, and construction (A/E/C) space. The overall A/E/C outlook continues a downward trend and this is driven largely by the freefall happening in key private-sector markets.
Hotel Facilities | Jan 23, 2023
U.S. hotel construction pipeline up 14% to close out 2022
At the end of 2022’s fourth quarter, the U.S. construction pipeline was up 14% by projects and 12% by rooms year-over-year, according to Lodging Econometrics.
Products and Materials | Jan 18, 2023
Is inflation easing? Construction input prices drop 2.7% in December 2022
Softwood lumber and steel mill products saw the biggest decline among building construction materials, according to the latest U.S. Bureau of Labor Statistics’ Producer Price Index.
Market Data | Jan 10, 2023
Construction backlogs at highest level since Q2 2019, says ABC
Associated Builders and Contractors reports today that its Construction Backlog Indicator remained unchanged at 9.2 months in December 2022, according to an ABC member survey conducted Dec. 20, 2022, to Jan. 5, 2023. The reading is one month higher than in December 2021.
Market Data | Jan 6, 2023
Nonresidential construction spending rises in November 2022
Spending on nonresidential construction work in the U.S. was up 0.9% in November versus the previous month, and 11.8% versus the previous year, according to the U.S. Census Bureau.
Industry Research | Dec 28, 2022
Following a strong year, design and construction firms view 2023 cautiously
The economy and inflation are the biggest concerns for U.S. architecture, construction, and engineering firms in 2023, according to a recent survey of AEC professionals by the editors of Building Design+Construction.
Self-Storage Facilities | Dec 16, 2022
Self-storage development booms in high multifamily construction areas
A 2022 RentCafe analysis finds that self-storage units swelled in conjunction with metros’ growth in apartment complexes.
Market Data | Dec 13, 2022
Contractors' backlog of work reaches three-year high
U.S. construction firms have, on average, 9.2 months of work in the pipeline, according to ABC's latest Construction Backlog Indicator.
Contractors | Dec 6, 2022
Slow payments cost the construction industry $208 billion in 2022
The cost of floating payments for wages and invoices represents $208 billion in excess cost to the construction industry, a 53% increase from 2021, according to a survey by Rabbet, a provider of construction finance software.
Mass Timber | Dec 1, 2022
Cross laminated timber market forecast to more than triple by end of decade
Cross laminated timber (CLT) is gaining acceptance as an eco-friendly building material, a trend that will propel its growth through the end of the 2020s. The CLT market is projected to more than triple from $1.11 billion in 2021 to $3.72 billion by 2030, according to a report from Polaris Market Research.
