Construction Employment Continues Upswing
Construction industry employment hit a new five-year high in November as the sector added 20,000 jobs and its unemployment rate fell to 7.5 percent, the lowest rate for November in seven years, according to an analysis by the Associated General Contractors of America. The AGC also highlighted that construction employment expanded in 228 metro areas, declined in 64 and was stagnant in 47 between October 2013 and October 2014.
Association officials cautioned, however, that the latest figures include signs that demand for public-sector and non-residential construction may be weakening. "November was another good month overall for construction workers and businesses," said Ken Simonson, the association's chief economist. "Yet the recent declines in public works and nonresidential building construction employment may indicate some underlying weakness in the construction market."
As noted for several months, the association also is concerned about the availability of qualified employees. While federal figures show year-over-year growth in construction spending, many firms report impacts from growing shortages of qualified workers. "Most metro areas are adding construction jobs as the industry slowly recovers," Simonson noted. "As spending on construction continues to climb, more and more firms will struggle with the impacts of a labor market that is not keeping pace with demand."
Read the AGC's complete news releases here and here.
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