Steel Markets

Tight Labor Market Constricts Construction Employment

July 10, 2019

Construction employment increased by 224,000 jobs, or 3.2 percent, in the last 12 months and by 21,000 jobs in June, said the Associated General Contractors of America in its latest analysis of government data.

Most job creation occurred in the nonresidential construction sector in June and in the past year. Non-residential contractors added 14,900 jobs in June and 146,700 jobs during the past year. Meanwhile, residential contractors added 6,000 jobs last month and 78,000 jobs between June 2018 and June 2019.

The unemployment rate for construction workers decreased 0.7 percent from a year ago to 4.0 percent in June. Job openings in May were at a 19-year high of 360,000, according to the latest government report.

Wages continue to go up as firms attempt to attract new hires from a tight labor market, said AGC. Average hourly earnings in construction increased to $30.73 per hour, 10.1 percent higher than average private sector jobs.

“Construction firms continue to go to great lengths to recruit and retain workers during one of the tightest labor markets many of them have ever experienced,” said Stephen E. Sandherr, the association’s chief executive officer. “Making matters worse, relatively few school districts offer the kind of career and technical education programs that signal to students that they should explore careers in high-paying fields like construction.”

“The nation’s education system continues to produce too many over-qualified baristas and not enough qualified bricklayers and other craft construction professionals” added Sandherr. “As a result of these educational imbalances, too many young adults are struggling to pay off college debts while too many construction firms are struggling to fill job positions that pay well and don’t require costly degrees.”