Construction employment grows in major metro areas, but firms looking to add more workers

Construction employment increased in 246 or 69 percent of 358 metro areas between August 2021 and August 2022, according to an analysis of new government employment data by the Associated General Contractors of America (AGC). However, association officials noted the job gains likely would have been higher if firms could find more qualified people to hire and train.

“While roughly two-thirds of metro areas added construction jobs in the past year, the number would be … higher if contractors could find enough qualified workers,” says Ken Simonson, AGC’s chief economist. “The record number of construction job openings and [the] ultra-low unemployment rate for workers with construction experience are signs of an ever-tighter labor market.”

The unemployment rate for jobseekers with construction experience declined to 3.9 percent in August from 4.6 percent a year earlier, Simonson says. He added that there were 393,000 job openings in construction at the end of July, the highest July total in the 22-year history of the government data.

In Texas, Houston, The Woodlands and Sugar Land added the most construction jobs (33,500 jobs, or 16 percent), followed by Washington cities Seattle, Bellevue and Everett (8,800 jobs, 8 percent). California followed close behind, with Los Angeles, Long Beach and Glendale adding 8,300 jobs, or 6 percent. The largest percentage gains were in Muskegon, Michigan (20 percent, 750 jobs), and Bloomington, Illinois (20 percent, 600 jobs), followed by Danville, Illinois (17 percent, 100 jobs).

Construction jobs declined over the year in 57 metro areas and were unchanged in 55 areas. The largest loss occurred in Florida cities Orlando, Kissimmee and Sanford (-5,500 jobs, -7 percent), followed by Richmond, Virginia (-3,500 jobs, -8 percent), and Austin-Round Rock, Texas (-2,800 jobs, -4 percent). The largest percentage declines occurred in Richmond and Charleston, West Virginia (-8 percent, -500 jobs), and Ithaca, New York (-8 percent, -100 jobs).

Association officials say the construction industry is taking a range of steps to recruit, prepare and retain new workers, including using digital advertising and creating new tools designed to make construction job sites more welcoming and inclusive. They have urged federal officials to boost construction education programs funding and expose more students to construction career opportunities.

“It makes more sense to boost investments in education programs that lead to high-paying careers instead of forgiving college loans for workers making less than their education cost,” says AGC CEO Stephen E. Sandherr. “Federal officials should be preparing students for the good jobs that exist, instead of paying them to pursue jobs that don’t.”