Construction employment increased in fewer than half of the nation’s metro areas between July 2014 and July 2015, the weakest expansion since late 2011, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials noted that the new jobs data comes while a series of vital federal infrastructure funding measures, notably the surface transportation program, languish unfinished in Congress. “Although construction employment and spending are still expanding well overall, the gains are increasingly spotty,” said Ken Simonson, the association’s chief economist. “Uncertainty over funding for transportation infrastructure, a contraction in … Read more
Go, Stop. Stop, Go: Oil Price Fluctuations Impact Construction Market
By Todd Burns The year began with decreased construction starts, affected in part by oil prices. Depressed oil prices have rippled through the major North American energy hubs, driving industry consolidation and reducing demand for real estate from energy companies. The sudden fall in prices in the recent months and the contraction of drilling activity have stressed the entire energy industry, especially for land-based exploration, drilling and supply companies. This kind of energy industry contraction reduces real estate demand and, therefore, construction starts, in energy-dominated cities like Houston, Texas, Calgary, Alberta Canada and Denver, Colorado. Although Houston is still the … Read more
Difficulty in Finding Skilled Construction Workers Evident in Jobs Report
U.S. construction industry employment rose 0.1 percent in July and added 6,000 net new jobs, while the construction unemployment rate shed 0.8 percentage points and now stands at 5.5 percent. Nonresidential construction employment fell by 4,600 jobs in July after losing 800 jobs in June. Nonresidential specialty trade contractors lost 3,700 jobs for the month, while the nonresidential building sector declined by 900 jobs. Residential construction and the heavy and civil engineering segment added 8,200 and 2,900 net new jobs in July, respectively. “The slump in energy sector investment continues to lead to job loss in the nonresidential construction industry,” … Read more
Construction Unemployment Falls to 14-Year Low
Construction employment in July climbed to the highest level since February 2009, while the number of unemployed workers with construction experience shrank to a 14-year low, according to a recent analysis by the Associated General Contractors of America. Association officials cautioned that the diminishing pool of available qualified labor may be having an impact on the industry’s ability to meet growing demand. “It is encouraging to see construction employment rising again, but the industry could hire many more workers if they were available,” said Ken Simonson, the association’s chief economist. “The lack of experienced construction workers may be impeding the … Read more
Construction Employment Declines Year-Over-Year Amid Highway, Transit Funding Uncertainty
Construction employment declined in 127 metro areas, was stagnant in 51 and increased in 180 between June 2014 and June 2015, according to a new analysis of federal employment data recently released by the Associated General Contractors of America. Association officials noted that the declines come as the House and Senate struggle to enact legislation to extend federal transportation investments beyond the July 31 expiration of the current program. “It is hard for construction firms to invest in new employees if they don’t know what business conditions will be like for the rest of the year,” said Ken Simonson, the … Read more