Construction employment increased in nearly two out of three U.S. metro areas in 2021, according to an analysis by the Associated General Contractors of America of new government employment data. Yet association officials noted that labor shortages likely kept many firms from adding even more workers.
“Construction employment topped year-earlier levels in almost two-thirds of metros for the past few months,” said Ken Simonson, the association’s chief economist. “But contractors in many areas say they would have hired even more workers if qualified candidates were available.”
Job openings in construction totaled 273,000 at the end of December, an increase of 62,000 or nearly 30% from December 2020, according to the government’s latest Job Openings and Labor Turnover Survey. That figure exceeded the 220,000 employees that construction firms were able to hire in December, implying firms would have added over twice as many workers if they had been able to fill all openings, Simonson pointed out.
Construction employment rose in 231 or 65% of 358 metro areas in 2021. Houston-The Woodlands-Sugar Land, Texas added the most construction jobs (8,800 jobs, 4%), followed by Chicago-Naperville-Arlington Heights, Ill. (6,500 jobs, 5%) and Los Angeles-Long Beach-Glendale, Calif. (6,300 jobs, 4%). Sioux Falls, S.D. had the highest percentage gain (24%, 2,100 jobs), followed by Beaumont-Port Arthur, Texas (18%, 3,000 jobs) and Atlantic City-Hammonton, N.J. (18%, 900 jobs).
Construction employment declined from a year earlier in 76 metros and was flat in 51. Nassau County-Suffolk County, N.Y. lost the most jobs (-5,700 or -7%), followed by New York City (-4,200 jobs, -3%) and Baltimore-Columbia-Towson, Md. (-3,800 jobs, -5%). The largest percentage declines were in Evansville, Ind.-Ky. (-18%, -1,700 jobs); Napa, Calif. (-15%, -600 jobs); Anchorage, Alaska (-14%, -1,400 jobs); and Lewiston, Idaho-Wash. (-13%, -200 jobs). Seven areas set all-time lows for December, while 57 metros reached new December highs for construction jobs.
Association officials said that the growing number of job openings in the industry was a clear sign that labor shortages are getting worse. They noted that the association’s recently released 2022 Construction Hiring and Business Outlook found that 83% of contractors report having a hard time finding qualified workers to hire. They urged Congress and the Biden administration to boost funding for career and technical education to help recruit and prepare more people for high-paying construction careers.
“For every dollar the federal government currently invests in career and technical education, it spends six urging students to attend college and work in an office,” said Stephen E. Sandherr, the association’s chief executive officer. “Narrowing that funding gap will help more people understand that there are multiple paths to success.”
View the metro employment data, rankings, top 10, and new highs and lows.
Related Stories
| Jun 5, 2023
Communication is the key to AEC firms’ mental health programs and training
The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.
Contractors | May 24, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023
Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.
Multifamily Housing | May 23, 2023
One out of three office buildings in largest U.S. cities are suitable for residential conversion
Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.
Industry Research | May 22, 2023
2023 High Growth Study shares tips for finding success in uncertain times
Lee Frederiksen, Managing Partner, Hinge, reveals key takeaways from the firm's recent High Growth study.
Multifamily Housing | May 8, 2023
The average multifamily rent was $1,709 in April 2023, up for the second straight month
Despite economic headwinds, the multifamily housing market continues to demonstrate resilience, according to a new Yardi Matrix report.
Market Data | May 2, 2023
Nonresidential construction spending up 0.7% in March 2023 versus previous month
National nonresidential construction spending increased by 0.7% in March, 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 $997.1 billion for the month.
Hotel Facilities | May 2, 2023
U.S. hotel construction up 9% in the first quarter of 2023, led by Marriott and Hilton
In the latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that construction pipeline projects in the U.S. continue to increase, standing at 5,545 projects/658,207 rooms at the close of Q1 2023. Up 9% by both projects and rooms year-over-year (YOY); project totals at Q1 ‘23 are just 338 projects, or 5.7%, behind the all-time high of 5,883 projects recorded in Q2 2008.
Market Data | May 1, 2023
AEC firm proposal activity rebounds in the first quarter of 2023: PSMJ report
Proposal activity for architecture, engineering and construction (A/E/C) firms increased significantly in the 1st Quarter of 2023, according to PSMJ’s Quarterly Market Forecast (QMF) survey. The predictive measure of the industry’s health rebounded to a net plus/minus index (NPMI) of 32.8 in the first three months of the year.
Industry Research | Apr 25, 2023
The commercial real estate sector shouldn’t panic (yet) about recent bank failures
A new Cushman & Wakefield report depicts a “well capitalized” banking industry that is responding assertively to isolated weaknesses, but is also tightening its lending.
Architects | Apr 21, 2023
Architecture billings improve slightly in March
Architecture firms reported a modest increase in March billings. This positive news was tempered by a slight decrease in new design contracts according to a new report released today from The American Institute of Architects (AIA). March was the first time since last September in which billings improved.