Economy

Construction Spending Edges Higher, But Sector Still Lacks Workers: AGC

Written by Laura Miller

November 2, 2023

Construction spending edged higher in September, but a shortage of workers continues to constrain project completion rates, according to the Associated General Contractors of America (AGC).

September spending on construction reached $1.997 trillion on a seasonally adjusted annual rate, unadjusted for inflation. That was a 0.4% rise from August’s rate.

Private residential construction spending increased 0.6% month on month. Spending on single-family homes registered a 1.3% increase, while spending on multifamily projects dipped 0.1%.

Spending on private nonresidential construction projects inched up 0.1%, and public construction investments increased 0.4%, according to the government data analyzed by AGC.

AGC noted the construction industry added 294,000 employees in September – 18% less than the same month of 2022. At the same time, overall job openings across the US rose to 438,000 as of the end of September.

“The huge number of openings was a sign the drop in hiring is due to a dearth of applicants, not projects,” said Ken Simonson, AGC’s chief economist.

AGC officials have warned Congress that excluding “the construction industry from the H-2B visa program will make it even harder for firms to find enough workers to keep pace with demand.”

The H-2B visa program permits employers to temporarily hire nonimmigrants to perform nonagricultural labor or services in the US.

“Excluding construction from the visa program is like having a federal government that wants to build things but doesn’t seem interested in having anybody to build them,” commented AGC CEO Stephen E. Sandherr.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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