Construction employment increased in 257 out of 358 metro areas between February 2017 and February 2018, declined in 50 and stagnated in 51, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that the employment gains are occurring as construction firms in many parts of the country are having a hard time finding enough qualified workers to keep pace with demand.
"Growing private-sector demand for construction services is prompting construction firms to hire more people to complete projects," said Ken Simonson, the association's chief economist. "Yet tight labor markets, particularly for qualified construction workers, is making it increasingly difficult for firms to find people to bring on board."
Riverside-San Bernardino-Ontario, Calif. added the most construction jobs during the past year (12,000 jobs, 13%), followed by Phoenix-Mesa-Scottsdale, Ariz. (9,900 jobs, 9%); Dallas-Plano-Irving, Texas (9,700 jobs, 7%); Houston-The Woodlands-Sugar Land, Texas (9,300 jobs, 4%) and Los Angeles-Long Beach-Glendale, Calif. (7,700 jobs, 6%). The largest percentage gains occurred in the Merced, Calif. metro area (33%, 700 jobs) followed by Midland, Texas (22%, 5,400 jobs); Lake Charles, La. (21%, 4,700 jobs) and Weirton-Steubenville, W.V.-Ohio (21%, 300 jobs).
The largest job losses from February 2017 to February 2018 were in Baton Rouge, La. (-6,500 jobs, -12%), followed by St. Louis, Mo.-Ill. (-2,500 jobs, -4%); Columbia, S.C. (-2,200 jobs, -11%); Fort Worth-Arlington, Texas (-2,000 jobs, -3%) and Middlesex-Monmouth-Ocean, N.J. (-1,700 jobs, -5%). The largest percentage decreases for the year were in Auburn-Opelika, Ala. (-38%, -1,500 jobs) followed by Baton Rouge, Columbia, S.C. and Kokomo, Ind. (-9%, -100 jobs).
Association officials said that growing private sector demand in February is prompting many firms to add more staff as they work to complete projects. They added that the recently-enacted federal spending measure includes up to $10 billion in additional infrastructure funding for this year, meaning firms that perform public-sector work are likely to begin expanding as well amid tight labor market conditions.
"As demand for construction continues to expand, it will only get harder for many firms to find qualified workers to hire," said Stephen E. Sandherr, the association's chief executive officer. "Congress and the administration should work together to expand career and technical education opportunities so more high school students will opt for good-paying careers in construction."
View the metro employment data by rank and state. View metro employment map.
Related Stories
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.
Industry Research | Oct 25, 2016
New HOK/CoreNet Global report explores impact of coworking on corporate real rstate
“Although coworking space makes up less than one percent of the world’s office space, it represents an important workforce trend and highlights the strong desire of today’s employees to have workplace choices, community and flexibility,” says Kay Sargent, Director of WorkPlace at HOK.
Market Data | Oct 24, 2016
New construction starts in 2017 to increase 5% to $713 billion
Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.
High-rise Construction | Oct 21, 2016
The world’s 100 tallest buildings: Which architects have designed the most?
Two firms stand well above the others when it comes to the number of tall buildings they have designed.
Market Data | Oct 19, 2016
Architecture Billings Index slips consecutive months for first time since 2012
“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.
Market Data | Oct 11, 2016
Building design revenue topped $28 billion in 2015
Growing profitability at architecture firms has led to reinvestment and expansion
Market Data | Oct 4, 2016
Nonresidential spending slips in August
Public sector spending is declining faster than the private sector.
Industry Research | Oct 3, 2016
Structure Tone survey shows cost is still a major barrier to building green
Climate change, resilience and wellness are also growing concerns.
Industry Research | Sep 27, 2016
Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry
Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.