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Construction Employment Continues To Climb07-15-15 | News

AGC Report Mostly Good News

New data released by the Associated General Contractors of America suggests general contractors are having a difficult time finding workers with building trades experience. And this is happening as the demand for new construction projects is rapidly rising.

A disturbing trend lurks underneath a bit of apparent upbeat news in a report released July 6 by the Associated General Contractors of America.

Employment in the construction industry held steady in June on a month-to-month basis, and remains at the highest level in six years, the AGC said in its latest construction employment report.

At the same time, the number of unemployed workers with construction trade experience is at its lowest level since 2001, the ACG added.

Those two points taken together show contractors are having difficulty finding qualified employees, while the demand for new construction projects continues to move upward.

"Expanding job opportunities throughout the economy make it increasingly difficult for contractors to find experienced construction workers," said Ken Simonson, chief economist for the AGC. "This scarcity shows up in record workweeks for craft workers and flattening of employment totals despite higher construction spending."

Census Bureau and other data show there is plenty of demand for new construction, especially apartments, the AGC said in its monthly construction employment report.

"Until now, all segments of the industry have added workers at a faster rate than the overall economy," Simonson added. "But some projects may be delayed or put on hold without new measures to recruit and prepare future workers."

Construction employment stood at 6.3 million in June, and matched the revised May total. These are highest figures since March 2009, Simonson noted.

At the same time, the number of unemployed people who last worked in a building trade totaled 522,000. This is the lowest since 2001.

"Too few students are even getting exposed to the idea that working in construction is a viable, and high paying, career option," said Stephen E. Sandherr, chief executive officer for the AGC.

Employment in the construction industry has increased 4.2 percent on a year-to-year basis. "Until officials take steps to rebuild what was once a robust vocational education system in this country, there won't be enough construction workers to complete projects in a timely fashion," Sandherr said.