Growing Labor Shortage for Construction?
Though year-over-year data show 39 states adding construction jobs, only 19 states added construction workers between April and May of this year, according to an analysis by the Associated General Contractors of America. The AGC says monthly construction employment levels declined in most states because companies appear to be running out of workers to hire.
“With construction demand remaining high and construction unemployment getting lower, the slowdown in monthly hiring probably has a lot more to do with a lack of workers than it does a lack of work,” said Ken Simonson, chief economist for the association. “Overall the construction market appears robust and as long as most firms can find qualified workers.” You can find the association's new release here.
Looking at year-over-year (May to May) results, California added the most construction jobs, followed by Florida, Georgia and New York showing good gains. North Dakota showed the biggest loss in construction job, followed by Kansas, Pennsylvania and West Virginia.
Though there were a few bright spots, 30 states showed a decline in construction employment from April to May, with Texas and Wisconsin showing the largest declines.
Association officials said that considering the low overall unemployment rate for the sector and continued strong demand for most types of construction activity, the fact a majority of states lost construction jobs for the month likely occurred because many firms are having a hard time finding qualified workers to hire. In an earlier report, the AGC said 70 percent of firmw were having a hard time finding qualified workers.
“Now that labor shortages appear to be undermining construction employment, it is only a matter of time before the lack of workers impacts broader economic conditions,” said Stephen E. Sandherr, the association’s chief executive officer. “
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