Employment Increases, But Shortage Persists: AGC

May 31, 2022

An analysis of government employment data shows an increase in construction employment across the country, although some areas are having difficulty finding qualified workers.

“Contractors are eager to hire more workers but the pool of experienced jobseekers barely exists,” said Ken Simonson,AGC’s chief economist, in a prepared statement. “As a result, employment gains have stalled in too many metros.”

The unemployment rate for jobseekers with construction experience fell from 7.7 percent in April 2021 to 4.6 percent in April 2022, the lowest April rate since the series began in 2000, according to Simonson. He said this indicated a scarcity of qualified workers available to hire in many metro areas.

The government’s Job Openings and Labor Turnover Survey showed that there were 415,000 job openings in construction at the end of March—the largest total for that month in the 22-year history of the survey, according to Simonson. Openings exceeded the 388,000 employees hired in March, which suggests that construction firms would have added twice as many employees if they had been available, he said.

Construction employment rose in 235, or 66 percent, of 358 metro areas over the 12-month period. Houston-The Woodlands-Sugar Land, Texas added the most construction jobs (13,000 jobs or 6 percent), followed by Dallas-Plano-Irving, Texas (9,200 jobs, 6 percent); St. Louis, Missouri-Illinois (5,400 jobs, 8 percent); and Seattle-Bellevue-Everett, Washington (5,400 jobs, 5 percent). Cheyenne, Wyoming, had the highest percentage gain (32 percent, 1,100 jobs), followed by Decatur, Illinois (25 percent, 800 jobs); and Norwich-New London-Westerly, Connecticut-Rhode Island (21 percent, 800 jobs).

Construction employment declined in 62 metro areas compared to April 2021 and was unchanged in 61 areas. The largest losses were in Orlando-Kissimmee-Sanford, Florida (-3,800 jobs, -5 percent), followed by New York City (-2,100 or -1 percent), and Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin (-1,500 jobs, -2 percent). The largest percentage declines were in Lewiston, Idaho-Washington (-17 percent, -300 jobs); Niles-Benton Harbor, Michigan (-13 percent, -300 jobs); and Gadsden, Alabama (-9 percent, -100 jobs).

Source: AGC