Challenges Threaten Employment Gains: AGC
Construction employment increased in 269 of 358 metro areas between September 2021 and September 2022, according to the Associated General Contractors of America. But association officials said that those job gains could stall as the industry faces a growing list of challenges, including labor shortages, rising materials prices, and slowing private-sector demand for construction.
“Firms added as many workers as they could find during the past year to keep pace with strong demand for construction in many parts of the country,” said Stephen E. Sandherr, CEO, in a prepared statement. “But as rising interest rates prompt developers to rethink future projects while prices for labor and construction materials remain high, fewer markets may experience job gains in the near future.”
Where were construction jobs added in September?
Houston-The Woodlands-Sugar Land, Texas added the most construction jobs (29,100 jobs or 14 percent), followed by Dallas-Plano-Irving, Texas (11,000 jobs, 8 percent); Seattle-Bellevue-Everett, Wash. (8,900 jobs, 8 percent) and Los Angeles-Long Beach-Glendale, Calif. (8,800 jobs, 6 percent). The largest percentage gains were in Provo-Orem, Utah (21 percent, 5,700 jobs); Danville, Ill. (17 percent, 100 jobs) and Albuquerque, N.M. (17 percent, 4,200 jobs).
Construction jobs declined over the year in 50 metro areas and were unchanged in 39 areas. The largest loss occurred in Orlando-Kissimmee-Sanford, Fla. (-6,300 jobs, -8 percent), followed by Richmond, Va. (-2,800 jobs, -7 percent); Bergen-Hudson-Passaic, N.J. (-2,100 jobs, -7 percent) and Baton Rouge, La. (-2,100 jobs, -5 percent). The largest percentage declines occurred in Orlando; Bergen-Hudson-Passaic and Richmond.
Association officials cautioned that rising interest rates are prompting private sector developers to rethink some projects as higher finance costs offset potential returns. They added that labor costs continue to rise as firms struggle to hire enough workers and supply chain challenges inflate the cost of key materials.
Source: AGC