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 | Apr 4, 2016
ABC: Nonresidential spending slip in February no cause for alarm
Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. The figure is a step back but still significantly higher than one year ago.
Market Data | Mar 30, 2016
10 trends for commercial real estate: JLL report
The report looks at global threats and opportunities, and how CRE firms are managing their expectations for growth.
Market Data | Mar 23, 2016
AIA: Modest expansion for Architecture Billings Index
Business conditions softening most in Midwest in recent months.
Retail Centers | Mar 16, 2016
Food and technology will help tomorrow’s malls survive, says CallisonRTKL
CallisonRTKL foresees future retail centers as hubs with live/work/play components.
Market Data | Mar 6, 2016
Real estate execs measure success by how well they manage ‘talent,’ costs, and growth
A new CBRE survey finds more companies leaning toward “smarter” workspaces.
Market Data | Mar 1, 2016
ABC: Nonresidential spending regains momentum in January
Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. Spending increased in January in 10 of 16 nonresidential construction sectors.
Market Data | Mar 1, 2016
Leopardo releases 2016 Construction Economics Report
This year’s report shows that spending in 2015 reached the highest level since the Great Recession. Total spending on U.S. construction grew 10.5% to $1.1 trillion, the largest year-over-year gain since 2007.
Market Data | Feb 26, 2016
JLL upbeat about construction through 2016
Its latest report cautions about ongoing cost increases related to finding skilled laborers.
Market Data | Feb 17, 2016
AIA reports slight contraction in Architecture Billings Index
Multifamily residential sector improving after sluggish 2015.
Market Data | Feb 11, 2016
AIA: Continued growth expected in nonresidential construction
The American Institute of Architects’ semi-annual Consensus Construction Forecast indicates a growth of 8% in construction spending in 2016, and 6.7% the following year.
