AGC: Contractors eager to hire but lack qualified applicants

Construction employment increased in 44 states in March from the previous year, while only 20 states added construction jobs from February to March, according to a new analysis of federal employment data released by the Associated General Contractors of America (AGC).

AGC officials say most contractors report they are still eager to hire but have been stymied by a lack of qualified applicants. Given the current labor markets, the association has urged officials in Washington to strengthen employment-based immigration and fund more career and technical education.

RELATED: Construction workforce short by more than half a million, says ABC | Brightline West executive to lead AGC in ’23

“A one-two punch from a pullback in homebuilding and unusually severe weather, especially in California, caused employment to drop in most states from February to March,” says Ken Simonson, AGC chief economist. “Construction employment continued to expand almost everywhere in March compared to a year ago, as demand for apartments, nonresidential building and infrastructure remains strong in many states.”

Between March 2022 and last month, 44 states added construction jobs, while industry employment declined in five states and held steady in North Dakota and Washington, D.C. Texas added the most jobs over the year (41,200 jobs, or 5.4 percent), followed by New York (18,200 jobs, or 4.7 percent), Florida (15,100 jobs, or 2.6 percent) and Indiana (10,800 jobs, or 7.0 percent).

Rhode Island had the largest percentage increase (11.9 percent, or 2,500 jobs), followed by Nevada (8.2 percent, or 8,500 jobs), Montana (7.5 percent, or 2,700 jobs) and Nebraska (7.5 percent, or 4,300 jobs). California lost the most jobs (-7,300 jobs, or -0.8 percent), while West Virginia had the largest percentage loss (-7.5 percent, or -2,500 jobs). Losses also occurred in Colorado (-1,800 jobs, or -1.0 percent), Connecticut (-1,800 jobs, or -2.9 percent) and South Dakota (-300 jobs, or -1.2 percent).

For the month, construction employment increased in 20 states and D.C., declined in 27 states and held steady in Rhode Island, Alaska and North Dakota. Texas added the most jobs over the month (5,800 jobs, or 0.7 percent), followed by Kentucky (2,600 jobs, or 3.1 percent), Massachusetts (1,900 jobs, or 1.1 percent) and Louisiana (1,100 jobs, or 0.8 percent). The largest percentage gains occurred in Kentucky, followed by D.C. (2.6 percent, or 500 jobs), Delaware (2.1 percent, or 500 jobs) and New Hampshire (1.7 percent, or 500 jobs).

California experienced the largest decline in construction jobs in March (-8,200 jobs, or -0.9 percent), followed by Washington (-3,600 jobs, or -1.5 percent) and Florida (-2,300 jobs, or -0.4 percent). Connecticut had the largest percentage loss for the month (-2.9 percent, or -1,800 jobs), followed by Washington.

Association officials say demand remains strong for massive manufacturing construction projects in numerous states, while infrastructure and energy construction are expected to boom in the next few years, but the industry will need more skilled workers to produce these facilities.