AGC: Record Job-Openings Curb Construction Employment in March

“Contractors have been adding workers as fast as they can find them,” said Ken Simonson, AGC’s chief economist. “But there just aren’t enough qualified workers available in many states, as shown by the record number of construction job openings at the February.”

There were 364,000 job openings in construction at the end of February, a 52% jump in openings from a year earlier – the highest February total since 2021 when the government first compiled the data. That figure exceeded February’s 342,000 construction hires, implying that construction firms would have added twice as many employees if they had been available, the economist asserted.

From February 2020 – the month before the pandemic caused projects to be halted or canceled – through March 2022, construction employment increased in 32 states, declined in 16 states and the District of Columbia, and was unchanged in Nevada and Wyoming.

Utah added the most construction jobs since February 2020, a boost of 15,000 workers, or 13.2% higher, followed by Tennessee (+11,400 or +8.6%) and Missouri (+11,300 or +8.8%). Utah also had the largest percentage gain, followed by South Dakota (+12.1% or +2,900) and Idaho (+12.0% or +6,600).

New York shed the most construction jobs over the 25-month period, down 29,600 works, or -7.2%, followed by Texas (-15,300 or -2.0%) and Pennsylvania (-14,200 or -5.3%). The largest percentage losses were in New York, Pennsylvania, and North Dakota (-5.0% or -1,400).

February construction employment increased in 35 states, decreased in 14 states and D.C., and was unchanged in Idaho. California added the most construction jobs during the month, adding 8,900 to payrolls, or up 1.0% MoM, followed by Texas (+4,400 or +0.6%) and North Carolina (+4,200 or +1.8%). South Dakota had the largest percentage gain, expanding by 7.1%, or 1.800 new jobs, followed by New Mexico (+3.3% or +1,700) and Connecticut (+2.1% or +1,300).

New York lost the most construction jobs over the same period, down -3,700 workers, or -1.0%, followed by Colorado (-2,300 or -1.2%) and Mississippi (-1,600 or -3.3%). Mississippi had the largest percentage loss as well, followed by West Virginia (-1.8% or -600), and Wyoming (-1.7% or -400).

A lack of workers is delaying critically needed projects, the association said, urging officials in Washington to boost the industry by increasing funding for career and technical education.

“Contractors are eager to hire more workers,” said Stephen Sandherr, AGC’s CEO. “The federal government must expand opportunities for appropriate education and training programs.”

By David Schollaert, David@SteelMarketUpdate.com