Construction employment hit a 50-month high as employers added 11,000
jobs in October, the fifth consecutive month of sector job gains, and
the industry unemployment rate fell to 9 percent, according to an
analysis of new government data by the Associated General Contractors of America.
Association officials said that the new employment figures
indicate there was little nationwide short-term impact from the federal
government shutdown and cautioned that skilled worker shortages are
likely to grow
as the industry continues to expand.
“After some very dramatic declines and years of sluggish growth, the
construction industry is slowly adding jobs,” says Ken Simonson, the
association's chief economist. “The federal government shutdown did not
appear to have undermined construction job growth in the short term
probably because it did not significantly impact projects that were
already underway.”
Construction employment totaled 5,834,000 in October, an increase of
185,000 from a year earlier, and is now at the highest level since
August 2009. Simonson noted that the October increase was the fifth
consecutive month of construction job growth. Meanwhile, the
unemployment rate for workers actively looking for jobs and last
employed in construction declined from 11.4 percent in October 2012 to 9
percent last month.
Nonresidential construction firms added 6,600 new jobs in October
while residential firms added 4,800 jobs. Within the nonresidential
sector, heavy and civil engineering firms – which are most likely to
perform federal construction work – added only 200 jobs. The modest
increase for that sector was likely caused by declining public sector
demand and not the federal shutdown, Simonson noted.
As the industry continues to add new jobs, many firms report
they are having a hard time finding qualified workers to fill key
positions. The number of unemployed construction workers has declined
at a faster rate than the industry has added jobs as laid-off workers
either retire or found work in other sectors. During the past three
years, the number of unemployed construction workers has declined by
712,000 while construction firms have added 323,000 new jobs, the
association’s chief economist said.
Association officials said another reason construction employers were
worried about finding enough qualified workers is the limited number of
career and technical education and training programs that exist. They
noted that many school districts have eliminated vocational education
programs, during the past several decades. They said they were
preparing a series of proposals to increase the number of career and
technical education and training opportunities that they will release
later this year.
“While we have a long way to go before construction employment hits
pre-recession levels, we need to take steps now to keep up with growing
demand,” says Stephen E. Sandherr, the association’s CEO. “The last thing we want is for the lack of qualified workers to
undermine the sector’s recovery.”
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