We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.

logo
  • Engineers & Specifiers
  • Contractors & Installers
  • Wholesalers & Distributors
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Free Subscription
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • PRODUCTS
    • Bath & Kitchen
    • Fire Protection
    • HVAC
    • Hydronics/Radiant
    • Plumbing
    • PVF
    • Tools
  • PROJECTS
    • Commercial
    • Green Building
    • MRO/Retrofit
    • Remodeling
    • Residential
  • HOW TO
    • Design
    • Fire Protection
    • Legal Matters
    • Management
  • BUSINESS
    • Buying Groups
    • Technology
    • Associations
  • CODES & STANDARDS
    • ANSI
    • ASHRAE
    • ASSE
    • Regulations
    • Green Building
    • IAPMO
    • ICC
    • NFPA
  • RESOURCES
    • Media Kit
    • Advertise
    • Contact Us
    • Classifieds
    • Digital Editions
    • Behind the Wall
    • Webinars
    • AHR Live 2023
  • PODCASTS
  • DIGITAL EDITIONS
Home » Construction Employment Declines by 6,000 in August

Construction Employment Declines by 6,000 in August

September 8, 2016
No Comments
And while that figure is 10 percent lower than what the AGC reported in a similar survey last year, three-quarters of construction firms in this year’s survey think it will be even more difficult to find those workers throughout 2017.

Construction employment slipped from July to August for the fourth time in five months, but year-over-year job gains and recently released spending data suggest the recent weakness is due to firms having a hard time finding workers rather than lack of demand, according to an analysis by the Associated General Contractors of America. Association officials said its recent survey that found two-thirds of contractors are having a hard time finding qualified craft workers underscores the need for measures to boost recruitment and training on new workers.

“A variety of indicators suggest contractors would be adding to headcount if they could find qualified workers,” said Ken Simonson, the association's chief economist. He noted that compared to a year ago, employment has risen nearly twice as fast in construction as in the overall economy. Meanwhile, average hourly earnings are rising faster than in the private sector as a whole, suggesting contractors are paying more to attract workers.

Simonson noted that there were also fewer unemployed workers with construction experience than in any August since 2000. “No wonder more than two-thirds of the respondents to a survey our association released this week reported difficulty filling craft worker positions,” the economist added.

Construction employment totaled 6,640,000 in August, a dip of 6,000 from July but an increase of 199,000 or 3.1 percent from a year ago. That rate of increase in construction employment was nearly twice as fast as the 1.7 percent increase for total nonfarm payroll employment. There were 454,000 unemployed jobseekers in August who last worked in the construction industry, the lowest total for August in 16 years, Simonson added.

Average hourly earnings, a measure of wages and salaries for all workers, increased 2.8 percent in construction over the past year to $28.22 in August, nearly 10 percent more than for all nonfarm jobs, the economist noted. For the private nonfarm sector, earnings rose 2.4 percent over the past 12 months to $25.73.

Residential construction—comprising residential building and specialty trade contractors—added 11,000 jobs in August and 132,000, or 5.4 percent, compared to a year ago. Nonresidential construction—building, specialty trades, and heavy and civil engineering construction firms—lost 17,000 jobs for the month but gained 67,000 employees compared to August 2015, a 1.7 percent rise. There were year-over-year gains for nonresidential building and specialty trades contractors but job losses among heavy and civil engineering construction firms.

Association officials cautioned that workforce shortages run the risk of undermining the industry’s continued recovery and could stall broader economic growth. They noted that firms can only do so much to improve their efficiency before workforce shortages force them to reconsider bidding on projects or delaying schedules.  If that happens, overall demand for new development projects could dampen.  They urged officials to act on the measures in the association’s Workforce Development Plan to boost recruitment and training opportunities.

“While contractors in many parts of the country are eager to hire new workers, they are having a hard time finding qualified candidates,” said Stephen E. Sandherr, the association’s chief executive officer.  “The best way to ensure continued economic growth is to enact measures to attract more young people into high-paying construction jobs.”

Business Contractors & Installers Industry Community News
  • Related Articles

    Construction employment declined by 1,000 jobs in March

    Trade group says construction industry adds 6,000 jobs in July

    Construction Unemployment Declines, Gas Prices Fall

  • Related Products

    CEU Webinar

    Directory Listing - Premium

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular

  • Chicago Plumber’s Union Dyes Chicago River Green for St. Patrick’s Day 2023

  • Six Truths About New DOE 2023 HVAC Efficiency Standards

  • Everything You Wanted to Know About Orangeburg Pipe (But Were Afraid To Ask)

  • The Basis for Most Plumbing Codes

Featured Video

Caleffi video thumb

The Gold Standard: Separation with NO Compromise

Industry Events

  • 26Mar

    MCAA 2023 Annual Convention

    Phoenix, AZ
  • 29Mar

    2023 SFPE European Conference & Expo

    Berlin ,
  • 11Apr

    ASA ELEVATE2023

    Charleston, SC
More Events

Subscribe to our newsletters & stay updated

Subscribe & Learn More

  • Tw03 2023 cover
    Learn More
  • Pe03 2023 cover
    Learn More
  • Phc03 2023 cover
    Learn More
  • Es 2022
    Learn More
Subscribe

More from PHCP Pros

  • Editorial Team
  • Home
  • Contact Us
  • About
  • Advertise

Follow Us

© 2023 All Rights Reserved

Design, CMS, Hosting & Web Development | ePublishing