Steel Markets
Construction Adds 16,000 Jobs, Unfilled Positions Remain High: AGC
Written by David Schollaert
September 8, 2022
Construction employment increased by 16,000 jobs in August, though the sector’s unemployment rate was up at 3.9%, the Associated General Contractors of America (AGC) reported.
Contractors were eager to hire more employees last month though they were stymied by a dearth of qualified workers. More than 90% of contractors are having a hard time finding workers in August, likely limiting the number of jobs added in the sector last month, AGC said.
“Nonresidential construction activity is growing but contractors universally report difficulty hiring as many workers as they need,” said Ken Simonson, AGC’s chief economist. “With the industry unemployment rate hovering below 4%, finding qualified applicants is sure to remain a major challenge.”
Total construction employment climbed to 7,708,000 jobs in August as both residential and nonresidential construction firms added positions for the month.
Nonresidential firms added 4,300 employees – with 700 jobs added to general building contractors and 5,600 to nonresidential specialty trade contractors. Those additions were offset by a loss of 2,000 at heavy and civil engineering construction firms.
Employment in residential construction—homebuilders, multifamily general contractors, and residential specialty trade contractors—increased by 10,900 in August.
Compared to August 2021, the construction industry has added 311,000 jobs, an increase of 4.2%. The nonresidential sector added 191,600 of the total annual job gain, an increase of 4.4% year-on-year (YoY). Meanwhile, residential construction firms added 118,700 jobs YoY through August, a 4% rise.
The unemployment rate among jobseekers with construction experience fell from 4.6% to 3.9% YoY in August, Simonson noted.
He said the low unemployment rate is consistent with AGC’s recent survey, which found that 93% of responding firms had open positions. Of those firms, 91% report having a hard time filling hourly craft positions.
Association officials noted that one of the main causes of workforce shortages is due to fewer people being exposed to the opportunities available in the industry and a lack of basic, essential skills.
Nearly 80% of contractors report there are few workers available that meet the minimum qualification standards, including being able to pass a drug test – an insurance requirement.
“Public officials need to boost funding for construction-focused training programs to expose more workers to the opportunities that exist in the industry,” Simonson added. “The industry has the work; it just needs the workers.”
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Markets
GrafTech’s Q2 loss widens in ‘challenging’ business environment
GrafTech cited a “challenging” part of the business cycle as its net loss widened in the second quarter.
CRU: Poor steel margins continue to push down raw material prices
Both iron ore and coking coal prices fell this week because of resistance from buyers. Iron ore prices have continued to fall throughout the past week, following sharp declines in steel prices in China, given no new policy announcement from the ‘Third Plenum’ meeting.
Op-Ed: The myth of the Mexican steel surge
We have heard ominous warnings about a flood of Mexican steel threatening the US market. It's the kind of rhetoric that gets thrown around often with little regard for the facts. The reality is that the Mexican steel surge is simply not happening, and the US steel industry has consistently maintained a significant trade surplus in finished products with Mexico. In 2023 alone, this surplus exceeded $3 billion.
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]
Influx of coated products fuels recent import surge
Steel imports fell back in May from April’s recent high but remained elevated compared to the levels seen over the past year. A deeper dive into the data confirms what SMU has been hearing from sources: Coated sheet is driving the recent rise in overall import levels.