Construction employment increased in 31 states on a month-over-month basis in August, according to an analysis of federal employment data released by the Associated General Contractors of America (AGC). The widespread gains come despite an AGC survey indicating that the vast majority of contractors would add more workers if they could find them.
“Despite an overall rise in construction employment, too many openings remained unfilled due to a lack of qualified workers,” says AGC chief economist Ken Simonson. “As a result, many projects are being delayed or even canceled.”
According to AGC’s 2022 Workforce Survey, 91% of respondents are having trouble filling open positions, particularly among the craft workforce that performs the bulk of on-site construction work. One of the main reasons for labor shortages is the lack of qualified workers, according to the survey. More than three-quarters of respondents indicated that available candidates lacked the skills needed to work in construction. Two-thirds of respondents reported that projects have been delayed because of labor shortage issues. To address workforce shortages, a majority of firms have increased pay rates, 45% of respondents are providing incentives and bonuses, and 24% of respondents have improved their benefits packages, according to the AGC. Over half of reporting firms also are involved in career-building programs such as high school, collegiate, or technical school construction programs.
Of the states with August construction gains, Arizona, Illinois, and Georgia added the largest number of construction jobs. Arizona, Kentucky, and Utah added the largest percentage of industry jobs on a month-over-month basis, according to the AGC. Minnesota, California, and Missouri lost the largest number of construction jobs in August, while Wyoming, Mississippi, and Montana experienced the largest percentage decline on a month-over-month basis.
