March Construction Employment Reaches 42-Month High

Unemployment in the construction industry fell to 14.7 percent in March as the industry added jobs at a faster pace than the overall economy. The hiring is being done largely by the private sector, as industry analysts are increasingly concerned that a lack of public infrastructure spending will hold back further growth in the field.

Construction industry employment climbed for the tenth consecutive month in March, as the sector added 18,000 jobs and surpassed 5.8 million employees for the first time since September 2009.

The 5.802 million construction workers employed in March constituted an increase of 162,000, or 2.9 percent, from a year ago and included many, but not all, nonresidential segments as well as residential construction, an analysis of government data by the Associated General Contractors of America (AGC) showed.

"The nearly steady expansion of construction payrolls since hitting bottom in January 2011 brought the industry's unemployment rate down to 14.7 percent last month, the lowest March rate since 2008," said Ken Simonson, the association's chief economist. "Unfortunately, the decline is less a result of the 370,000 construction hires than because more than a million and a half experienced workers have left the industry since its peak. That makes shortages of skilled workers increasingly likely in high-demand crafts such as pipefitting, welding and some residential activities."

Residential building and specialty trade contractors added 14,800 workers in the month and 77,800 (3.8 percent) over 12 months. Nonresidential building and specialty trade contractors, along with heavy and civil engineering construction firms, boosted employment by 3,000 in March and 84,400 (2.3 percent) since March 2012.

Association officials said that these diverging employment patterns mean it is essential for the industry to be able to recruit workers from abroad if necessary to fill gaps in critical segments. It is equally important that the public sector stop underinvesting in vital highway and water infrastructure, they said.

"Construction is now adding jobs at a faster clip than the economy as a whole, but there are twin threats to both the industry and overall economic expansion," said Stephen Sandherr, the AGC's CEO. "To keep the economy on track, the nation needs up-to-date infrastructure that can deliver energy, goods and people. Policy makers need to do their part by investing in public infrastructure and by allowing construction to import workers when needed."