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AGC Employment Report Identifies Factors Slowing Industry Growth

By Matt Kraus | Aug 15, 2016
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While overall trends indicate a national growth in construction employment, in certain areas of the country, there is still cause for concern. According to findings by the Associated General Contractors of America (AGC), this is heavily tied to the health of the local economy.

Between July 2015 and July 2016, 39 states and Washington, D.C., added construction jobs. However, upon closer inspection, only 23 states and Washington, D.C., added jobs between June 2016 and July 2016. While overall growth is undeniable, the AGC identified some reasons for the hiccups some states are experiencing.

For one, while the opportunity for work is growing, firms have had trouble finding qualified employees to complete this work. This has been as much of a challenge to the industry as the economy, if not more so.

“While there is slack in key segments like infrastructure and parts of the country that are struggling economically, many of these declines likely have more to do with firms not being able to find workers than not being able to find work,” said Stephen E. Sandherr, CEO, AGC.

In both strong and struggling economic areas, the current construction climate presents some challenges. In areas where the economy is not growing, firms are having trouble finding work for their employees. Firms specializing on infrastructure projects also are having trouble coming up with work.

However, firms in thriving economic areas are having the opposite problem. The work may be plentiful, but they are facing a shortage of qualified workers.

California showed the most growth between July 2015 and July 2016, adding 29,100 construction jobs, while Kansas lost the most (4,400 jobs) over the course of the year.

Between June and July 2016, Texas topped the list by adding 7,800 construction jobs, while Ohio lost 3,600 jobs to come in at the bottom. In this one-month period, construction employment remained steady in Alaska.

“What is clear from the data is there is not one single labor market for the construction industry,” Sandherr said.

The AGC will soon release new, detailed workforce shortage data that will further explore this lack of qualified workers.

About The Author

Matthew Kraus was formerly the director of communications at NECA and senior editor of ELECTRICAL CONTRACTOR for five years. He can be reached at [email protected].

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