South Florida, August 8, 2023 – In a remarkable surge, the construction sector has added over 23,000 jobs this June, leading to an unprecedented drop in unemployment rates within the industry. This exciting development has been analyzed by the Associated General Contractors (AGC) of America, shedding light on the thriving state of the construction field. The figures indicate a robust demand for construction services, although employers would have hired even more workers if the supply had met the demand.
According to Ken Simonson, Chief Economist of the AGC, the trend is characterized by soaring demand for construction workers coupled with an exceptionally tight supply of available talent. Both residential and nonresidential construction are displaying impressive growth, defying concerns about overall economic growth and inflation.
The latest figures reveal that construction employment has reached 7.95 million, seasonally adjusted, reflecting an increase of 0.3 percent or 23,000 new jobs in June alone. Over the past year, the sector has seen a substantial rise of 198,000 jobs, marking a remarkable growth rate of 2.6 percent. The expansion is apparent in both nonresidential construction firms – including nonresidential building and specialty trade contractors, along with heavy and civil engineering construction firms – which collectively added 12,200 employees in June. Moreover, residential building and specialty trade contractors contributed by increasing employment by 10,800.
A noteworthy achievement is the dip in the unemployment rate among construction-experienced jobseekers, which reduced from 3.7 percent in June 2022 to 3.6 percent in June 2023. This rate marks the lowest in the 24-year history of recorded data for the month of June. A separate government report highlighted 396,000 job openings in the construction sector by the end of May, a strong testament to the challenge contractors face in locating qualified workers.
In the realm of earnings, the construction sector has demonstrated impressive growth. Average hourly earnings for production and nonsupervisory employees in construction have risen by 5.7 percent over the year, reaching a commendable $34.09 per hour. This elevation underscores the sector’s commitment to compensating its workforce adequately. The construction industry’s wage premium, standing at more than 18 percent compared to average hourly earnings for all private-sector production employees, highlights its dedication to fostering a rewarding work environment.
Stephen E. Sandherr, Chief Executive Officer of the AGC, underscored the importance of directing attention towards construction-focused education and training. While acknowledging the significance of politicians interacting with construction workers, Sandherr emphasized the necessity of investing in initiatives that unveil the high-paying career opportunities that the construction industry offers.
These compelling statistics not only showcase the remarkable growth of the construction sector but also underscore the need for concerted efforts to bolster the industry’s workforce through education and training. As South Florida’s premier structural engineering firm, Polikar Engineering Solutions (PES), remains committed to contributing to the sector’s growth and progress.
For more information about the construction industry and its latest developments, stay tuned to Local News on the Polikar Engineering Solutions website.
View the construction employment data.
Original Article By AGC.org