Construction employment up 4.7%

The number of unemployed construction workers nationwide in March was at its lowest point for that month since 2001, according to a report by the Associated General Contractors of America.

Construction firms added 301,000 jobs over the last year, while spending increased 10.3 percent in February from a year ago. That indicates that the industry is steadily expanding to meet growing demand, the AGC said.

“These two reports confirm that demand for construction is robust and well balanced among residential, private nonresidential, and public segments,” said Ken Simonson, the association’s chief economist, in a written statement. “Compared with the same month a year ago, the industry is adding workers at more than double the rate of the overall economy, and construction spending continues to rise at a double-digit pace.”

Construction employment totaled 6,672,000 in March, the most since December 2008, and is up 4.7 percent from a year ago. The number of jobs grew by 37,000 from February.

Residential construction employment increased by 13,400 jobs in March from February and was up 6.8 percent, or 166,000 jobs, from a year ago. Nonresidential construction employment grew by 23,900 jobs last month from February, and is up by 134,800 jobs from March 2015, a 3.4 percent increase.

Spending rose more than 10 percent over the year to reach $1.14 trillion in February, but dipped 0.5 percent from January.

Spending rose in both residential and nonresidential construction on an annual basis. But private nonresidential construction spending slipped 1.3 percent in February from January, and public construction spending declined 1.7 percent in the same period. Outlays on highway and street construction, the largest public segment, fell 2.1 percent for the month following an exceptionally large increase of 15 percent in January.

Meanwhile, the number of unemployed jobseekers who last worked in construction totaled 768,000. The unemployment rate for such workers was 8.7 percent, a 10-year low for the month of March.

“Construction firms are finding a way to add staff to keep pace with growing demand for their services,” said AGC Chief Executive Stephen Sandherr. “But the pool of available experienced labor is small and getting smaller, which is why we continue to push for measures to expand recruiting and training opportunities for future workers.”

Many construction companies have had trouble finding employees due to an aging workforce and fewer individuals pursuing construction careers. The AGC has a workforce development plan that seeks to entice more high school students and more college students to enter the industry.