Construction employment increased in 68% of metropolitan statistical areas analyzed by the Associated General Contractors of America (AGC) between September 2018 and September 2019. Despite the large number of metros finding success adding industry employees, the AGC reports firms in more metro areas would have added to their workforce if there had been a sufficient supply of skilled labor. The AGC reported that 244 metro areas added construction jobs on a year-over-year (YOY) basis.
“Even though construction firms in over two-thirds of the nation’s metro areas were able to add employees in the last year, our survey [of construction contractors across the U.S.] suggests employers in still more locations would have done so if they could find more qualified workers to hire,” AGC chief economist Ken Simonson said. “Job openings at construction have been at record levels in recent months, showing that contractors are still eager to hire.”
The YOY growth in construction employment is slightly lower than numbers in AGC reports from recent months. In August, 255 metro areas added jobs YOY, 258 metros added construction jobs in July, and 253 metros added jobs in June on a YOY basis.
To combat the difficulties presented by the skilled labor shortage, many firms are boosting pay and benefits to incentivize potential workers to enter the construction labor force. Firms are also investing more in training programs and adopting new technologies and techniques to improve efficiency, according to the AGC.
Dallas-Plano-Irving, Texas, Phoenix-Mesa-Scottsdale, Ariz., Los Angeles-Long Beach-Glendale, Calif., Houston-The Woodlands-Sugar Land, Texas, and Nassau County-Suffolk County, N.Y., added the most construction jobs in pure numbers in the past 12 months. Pocatello, Idaho, and Omaha-Council Bluffs, Neb./Iowa, added the highest percentage of construction jobs on a YOY basis. Construction employment reached a new September high in 64 metros and dipped to record lows in three metro areas. New York City, N.Y., and Charlotte-Concord-Gastonia, N.C., lost the largest number of construction jobs in the past year while Longview, Texas, and Fairbanks, Alaska, experienced the steepest percentage decrease of industry jobs during the past 12 months.
