Construction firms 'struggling to fill jobs' as 25 states shed positions in June

Dive Brief:

The Associated General Contractors of America reported that 25 states lost jobs between May and June, while 23 states and Washington, DC, added positions. Between Jun 2015 and June 2016, 39 states added construction jobs.
Pennsylvania (3,400 jobs, 1.5%) boasted the biggest May-to-June job increase, and Delaware (3.4%, 700 jobs) saw the biggest percentage gain. Once again, California (32,300, 4.5%) had the biggest year-over-year job gains, and Hawaii (15.9%, 6,700 jobs) had the biggest percentage increase.
Of the 25 states to lose jobs from May to June, Texas (-2,800 jobs, -0.4%) was the biggest loser once again, and Maine (-4.7%, -1,200 jobs) lost the highest percentage of jobs. Year over year, North Dakota, yet again, lost the most construction jobs, as well as the highest percentage (-4,300 jobs, -12.4%).

Dive Insight:

The AGC said stagnant monthly construction employment, as well as losses for that same period, should send a signal to the industry that the strengthening of construction recruitment and training programs is critical, particularly due to the fact that such a slowdown in employment is happening in an environment of growing construction industry demand.

This trend has led to an uptick in open positions, according to AGC Chief Economist Ken Simonson, but the shortage of workers has made it more difficult for employers to fill those spots. "Contractors appear to be struggling to fill jobs in the short run," he said in a release.

Not only does this lack of worker supply affect the construction industry, but it also has the potential to negatively impact the overall economy as well, according to AGC CEO Stephen Sandherr.

The AGC again pointed to its early 2016 findings that 71% of construction companies surveyed by the organization had concerns about being able to fill positions this year, potentially hindering their expansion plans. Earlier this month, the AGC reported that U.S. construction employment stayed relatively unchanged from May to June but saw a year-over-year 3.4% increase. The organization's analysis of Bureau of Labor Statistics data also revealed that June marked the lowest construction unemployment rate (4.6%) since 2000.