Dive Brief:
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September construction employment made a strong month-over-month comeback, adding almost 23,000 positions from August, according to the Bureau of Labor Statistics' (BLS) latest report, with nonresidential and residential specialty trade contractors contributing almost 15,000 of those jobs.
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Construction employment reached 6,669,000, its highest level since late 2008, according to the Associated General Contractors of America, and was 3.4% higher than in September 2015. The organization noted that the year-over-year, construction hourly pay rate increase held steady at 2.8% since August.
- Of the near 23,000-job increase, nonresidential added almost 3,000 jobs, residential added nearly 16,000 and heavy-civil engineering added more than 4,000.
Dive Insight:
Both the ABC and AGC reacted positively to September's BLS data, but the ABC said the slowdown in nonresidential hiring could indicate a decrease in activity ahead in that sector due to factors including tight credit conditions, seasonal fluctuations and developers' struggle to find tenants for their completed mixed-use projects.
The ABC also pointed to the American Institute of Architects' monthly Architectural Billings Index, which was below 50 (49.7) for August, indicating a decline in the demand for design services and a potential slowdown in future construction activity.
The ongoing shortage of qualified workers, however, was cited as one of the biggest challenges contractors face and requires increased federal funding for secondary and post-secondary career and technical programs, according to the AGC.
MarketWatch pointed out, however, that while other companies have focused on improving jobsite efficiencies and increasing workers' hours, only 48% of construction firms have increased wages in an effort to attract qualified employees. An August AGC survey revealed that 69% of contractors said they're having a hard time finding skilled, hourly workers, while 75% responded that they anticipate difficulty in finding enough qualified workers next year.
