Growth in Employment Still Falls Short

April 6, 2023

Although construction employment increased in four of five metropolitan areas tracked by the federal government, the number of open jobs remains high, according to industry trade groups.

Associated Builders and Contractors said industry job openings totaled 412,000 in February, based on data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. That’s 129,000 more openings than in January, but 9,000 fewer than in February 2021.

“Demand for construction workers remains elevated despite fears of recession, slow implementation of America’s infrastructure rebuilding program, higher interest rates, and growing concerns regarding the availability of project financing in light of recent bank failures,” said Anirban Basu, ABC chief economist, in a statement.

According to the Associated General Contractors of America, 283, or 79 percent, of 358 metro areas increased employment between February 2022 and February 2023.

“Although construction employment rose in nearly four-fifths of all metros in the past 12 months, contractors are still struggling fill jobs,” said Ken Simonson, AGC chief economist, in a statement. “There were far more job openings in construction at the end of February than construction employees hired in the entire month.”

Dallas-Plano-Irving, Texas added the most construction jobs (15,000 jobs or 10 percent), followed by Las Vegas-Henderson-Paradise, Nevada (9,100 jobs, 13 percent); Atlanta-Sandy Springs-Roswell, Georgia (8,900 jobs, 7 percent), and Phoenix-Mesa-Scottsdale, Arizona (7,300 jobs, 5 percent). The largest percentage gains were in Hanford-Corcoran, California (27 percent, 300 jobs); Wausau, Wisconsin (23 percent, 500 jobs); Danville, Illinois (20 percent, 100 jobs); and Watertown-Fort Drum, New York (20 percent, 300 jobs).

Construction jobs declined over the year in 41 metro areas and were unchanged in 34 areas. The largest loss occurred in Sacramento—Roseville—Arden-Arcade, California (-4,200 jobs, -6 percent), followed by Los Angeles-Long Beach-Glendale, California (-3,200 jobs, -2 percent); Pittsburgh, Pennsylvania (-3,100 jobs, -6 percent); Miami-Miami Beach-Kendall, Florida (-2,900 jobs, -6 percent); and Lake Charles, Louisiana (-1,700 jobs, -12 percent). Lawton, Oklahoma experienced the largest percentage job loss (-18 percent, -300 jobs), followed by Monroe, Michigan (-17 percent, -400 jobs); Lake Charles; and Gulfport-Biloxi-Pascagoula, Mississippi (-10 percent, -900 jobs).

Government data released on April 4 showed there were 384,000 job openings in construction at the end of February, topping the 315,000 workers hired during the entire month. The disparity implied that contractors wanted to hire more than twice as many employees as they were able to find, Simonson said.

“Construction firms can’t hire fast enough to keep pace with strong demands and the turnover that comes with having an aging workforce,” said Stephen E. Sandherr, the association’s CEO.

About the Author

Rod Sutton

Sutton has served as the editorial lead of Construction Equipment magazine and ConstructionEquipment.com since 2001. 

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