Steel Markets

AGC: Employment Demand Outpacing Supply of Workers

June 2, 2019

Construction employment expanded in 250 of 358 metro areas in the 12 months through April, according to the latest analysis of employment data by the Associated General Contractors of America. Employment declined in 53 areas and was unchanged in 55. Workforce shortage continues to be a problem for the construction industry, said AGC.

“Demand for construction is steady or rising in most parts of the country, and many contractors are adding workers when they can find them,” said Ken Simonson, the association’s chief economist. “At the same time, many firms report they would have hired even more employees if only they could find enough qualified workers.”

The association proposes immigration reform to allow more men and women with construction to enter the country legally as well as establishing more school programs to attract young people to the industry.

One reason relatively few young adults choose to pursue rewarding careers in construction is because not many of them are being told it is an option to consider,” said Stephen E. Sandherr, the association’s chief executive officer. “We have a lot of contractors looking for workers so they can keep up with the amount of work that is out there.”

Data from AGC highlights areas where the most and fewest jobs were added in the past year:

The Phoenix-Mesa-Scottsdale, Ariz., metro area added the most construction jobs during the past year (16,600 jobs, 14 percent). Other metro areas adding a large amount of construction jobs during the past 12 months include Dallas-Plano-Irving, Texas (9,200 jobs, 6 percent); Los Angeles-Long Beach-Glendale, Calif. (8,400 jobs, 6 percent); Atlanta-Sandy Springs-Roswell, Ga. (7,000 jobs, 6 percent) and Las Vegas-Henderson-Paradise, Nev. (6,800 jobs, 11 percent). The largest percentage gain occurred in Monroe, Mich. (26 percent, 500 jobs) and St. Cloud, Minn. (26 percent, 1,500 jobs), followed by Auburn-Opelika, Ala. (25 percent, 600 jobs) and Norwich-New London-Westerly, Conn.-R.I. (16 percent, 600 jobs).

The largest job losses between April 2018 and April 2019 occurred in Charlotte-Concord-Gastonia, N.C.-S.C. (-2,600 jobs, -4 percent), followed by Baton Rouge, La. (-1,800 jobs, -3 percent); Hartford-West Hartford-East Hartford, Conn. (-1,600 jobs, -8 percent) and Longview, Texas (-1,300 jobs, -9 percent). The largest percentage decrease took place in Gulfport-Biloxi-Pascagoula, Miss. (-13 percent, -1,200 jobs) and Atlantic City-Hammonton, N.J. (-13 percent, -800 jobs), followed by Niles-Benton Harbor, Mich. (-12 percent, -300 jobs); Evansville, Ind.-Ky. (-9 percent, -1,000 jobs) and Longview, Texas.