By Ethan Duran
91ĘÓƵ Newswires

There were 339,000 construction job openings in May, a slight rise from April’s total of 337,000, from the U.S. Bureau of Labor Statistics showed. That’s 38,000 less job openings compared to May 2023.

The industry is still dealing with labor shortages despite unfilled positions falling over the past year, said Anirban Basu, chief economist of the .

“The 4.0 percent of construction jobs that were unfilled in May is a higher rate than in the months leading up to the start of the pandemic, a time when construction labor was already scarce,” Basu said. “Because of these shortages, a higher share of construction workers quit in May than in any month over the past year,” he added.

More than half of contractors who responded to ABC’s Construction Confidence Index want to add to their staff over the next six months, Basu said. Companies laid off only 1.8 percent of its workforce in May, a smaller share than any month before late 2021, he added.

Construction jobs increased in 63 percent (or 225 of 358 metro areas) between May 2023 and May 2024, a report from the showed. Changing demand for construction and labor woes affected employment in some parts of the country, officials said.

“A pullback in starts by developers of apartments, warehouses and offices, along with spotty improvement in single-family starts, has held down job gains in some metros,” said Ken Simonson, chief economist at AGC. “But surging demand for data centers, manufacturing and power projects and infrastructure mean contractors in many metros are still short of all the workers they need,” he added.

The Houston, Texas, area had the highest increase of construction jobs of 8,400 jobs or 4 percent over the past 12 months, followed by Baton Rouge, Louisiana (8,200 jobs, 18 percent) and the Las Vegas area (6,900 jobs, 8 percent).

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The Associated General Contractors (AGC) announced the construction industry added 19,000 jobs in July while the sector’s unemployment rate increased, according to a recent data analysis. Employers are bumping pay levels up in search of labor which has drawn previously employed workers back into the job market, AGC officials added.

“The construction industry continues to add workers at a steady clip as demand for many types of construction remains strong. Firms are boosting pay to cope with tight labor market conditions, which is bringing more former workers back into the job market,” said Stephen E. Sandherr, chief executive officer of AGC.

As of July, there were 7.9 million people employed in the construction industry, an addition of 19,000 compared to June, AGC officials said. That number is seasonally adjusted. Construction added 198,000 jobs (2.5%) during the past 12 months, officials added.

Nonresidential construction, which includes nonresidential building and specialty trade contractors and heavy and civil engineering construction firms, added 10,600 employees (3.1%) in July, according to AGC. Residential building and specialty trade contractors grew employment by 7,800 (1.8%).

The construction unemployment rate was 3.9% in July, an increase over June (3.6%) and May (3.5%), according to the Bureau of Labor Statistics (BLS). That’s a higher year-over-year rate compared to 3.5% in July of 2022.

According to AGC analysts, a separate government release reported there were 378,000 openings at construction firms at the last day of June, close to the record high for June set in 2022.

The average hourly earnings for production and nonsupervisory employees in construction, including most onsite craft workers as well as many office workers, jumped 5.8% year-over-year to $32.24 per hour, AGC officials said. In July, Construction companies provided a wage “premium” of just over 18% compared to the average hourly earnings for all private-sector production employees, officials added.

Labor shortages in construction still loom over federal investments in infrastructure (Infrastructure Investment and Jobs Act), semiconductor chip plants (CHIPS and Science Act) and green energy construction, association officials said. AGC, which lobbies to the U.S. government, urged federal officials to boost funding for construction education and training programs.

Officials noted the federal government spends five times as much encouraging students to attend colleges as it does on career and technical education programs.

“Unless federal officials begin to narrow the funding gap between college prep and career training the construction industry will continue to struggle to find workers. It is great that federal officials want to invest in construction projects, they also need to invest in construction workforce development,” said Sandherr.

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Construction jobs rose nearly 4 percent compared to last year and wages had their biggest year-over-year increase in 40 years, analysts for the Associated General Contractors of America said.

Construction employment added 19,000 jobs last month, a Bureau of Labor Statistics report showed. Jobs totaled 7,719,000 in September, a 3.9 percent increase (292,000 added jobs) compared to 2021, the AGC analysis said. The analysis pulls information from research firms, industry indexes and national surveys.

Residential building and specialty trade contractors rose by 6,400 last month, leading to a 3.6 percent increase (110,500 jobs) compared to 2021, the analysis said. Employment at civil engineering construction firms, building and specialty trades climbed by 13,100 for the month and led to a 4.2 percent (181,500 jobs) year-over-year increase.

Average hourly earnings were $32.83 per hour for production and nonsupervisory employees in construction, or a 6.7 percent increase compared to 2021, the analysis said. Wages had the largest increase for the first time in 40 years and exceeded the 5.8 percent increase for all private sector employees, the AGC added.

Unemployed jobseekers in the construction field fell by 98,000 or 22 percent year-over-year to 346,000, the analysis said. The industry’s unemployment rate fell from 4.5 percent to 3.4 percent without adjustment for seasonal work.

At the end of August, there were 437,000 job openings in construction. The report said hiring increased by 4,000 or 1.1 percent year-over-year to 378,000 and layoffs fell by 33,000 (20 percent) year-over-year to 129,000. The number of people quitting jumped by 46,000 or 20 percent to 281,000.

Many contractors reported their lead times worsened, according to a survey where 93 percent of 602 respondents said they were facing long lead times for construction materials. Respondents said they were unlikely able to locally source materials like steel, nonferrous metals, plastic products, electrical equipment and HVAC systems.

On the flip side, aggregates and concrete producers said they had additional price increases for the past two to three months, according to a report from Thompson Research Group. Investment research firm officials said price increases over the fall were a mixed bag and fall aggregate prices would be implemented on a market-by-market basis. Fall cement pricing actions will be pushed to January, officials added.

Economic activity in the services sector grew in September for over two years, a report from the Institute for Supply management said. Meanwhile, construction delays affected 90 percent of multifamily owners and developers, a survey from the National Multifamily Housing Council showed.

The Dodge Momentum Index, a monthly report of nonresidential building project plans, rose 5.7 percent in September from August and 26 percent year-over-year, the analysis said. While the institutional part of the index rose 12 percent for the month and 28 percent year-over-year, the commercial component increased 2.9 percent and 25 percent respectively.

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PORTLAND, Ore. (AP) — Oregon says its unemployment rate for July was the lowest in 42 years of keeping comparable records.

The state reported Tuesday that the July rate was 3.9 percent, a slight dip from June’s rate of 4.0 percent.

That’s the lowest rate since 1976.

The U.S. unemployment rate exactly matched Oregon’s rate in both months.

During the past two years, Oregon’s unemployment rate has been remarkably low and steady.

The rate was either 4.1 percent or 4.2 percent each month stretching from January 2017 to May 2018.
In July, Oregon’s nonfarm payroll employment rose by 5,400 jobs, following a revised over-the-month gain of 6,600 jobs in June.

Monthly job gains were concentrated in retail trade, construction and health care and social assistance.

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Oregon’s employment report for September could be cause for alarm.

While the state’s unemployment rate was essentially unchanged from August, the construction industry took a hefty hit, losing 1,400 jobs – 1,600 if adjusted for seasonality. Typically, September produces a gain of about 200 jobs.

However, industry observers pointed out that activity is up for building permits and residential investment.

The state’s unemployment rate dropped 0.2 points to 8.7 percent last month – 0.7 percent lower than September 2011, according to the latest report from the Oregon Employment Department. But Bureau of Labor Statistics data indicates that nonfarm employment fell by 7,900 jobs – 5,500 in the private sector.

The specialty trade sector suffered 1,300 of construction’s 1,400 job losses. Building equipment contractors and foundation and exterior contractors cut back the most, by 600 and 400 jobs, respectively.

But David Cooke, an economist with the state, said people should take the report with a grain of salt.

“One thing about employment numbers is it’s based on a survey of businesses and there’s a relatively high variance,” Cooke said. “They can get off track fairly commonly by a decent amount and that may be what’s happening now.”

One reason Cooke suspects the number may be skewed is because building permit activity is up significantly, though it is still only half of what it was during the boom years. According to fresh data from the U.S. Department of Housing and Urban Development, building permits for privately owned housing units jumped 11.6 percent over August to 894,000 on a seasonally adjusted basis – 45 percent higher than a year ago.

In the Portland-Vancouver, Wash.-Beaverton market, building permits for single-family homes were up 47 percent, compared to 28 percent for the state as a whole, according to a quarterly report that Portland State University’s Center for Real Estate issued recently. Multifamily permits were also up 93 percent compared to 60 percent for the state.

Housing starts across the nation were also up in September, increasing 15 percent over August to an annual rate of 872,000 – nearly 35 percent more than in September 2011. Oregon’s numbers were healthy as well.

“The current quarter is shaping up to be the strongest for single-family starts since the end of the recession, and expectations are for these gains to continue moving forward,” wrote Josh Lehner, a state economist, in a Wednesday blog post on an Oregon Office of Economic Analysis webpage.

Gains in the residential sector generally translate into commercial sector activity, and local contractors are feeling it.

“We’re having a hard time finding guys to tell you the truth,” said David Thompson, controller for commercial contractor Current Electrical Construction Co. and a member of the board of directors for the Independent Electrical Contractors of Oregon. “It looks to us right now that it’s picking up; we’re hiring.”

Thompson said work has been steady for the past six months, but one thing that still causes some sleepless nights is the breadth of his backlog. While it used to stretch out for six months to a year, today it’s closer to 60 days.

Corey Lohman, president of Emerick Construction, said business is fantastic at the moment, but that much of it is coming from a backlog that it built at the beginning of the year. Not many new projects are coming in, in large part because of a slowdown in the public sector. He is cautiously optimistic about the year ahead.

“We’ve been very, very fortunate through the entire downturn,” Lohman said. “We haven’t been in a position where we had to cut back staff, but we’re absolutely not in a position where we need to hire.”

Emerick employs approximately 35 people. It expects total sales volume this year to reach approximately $50 million – a 16 percent gain over last year.

Cooke said another factor that might be skewing September’s employment figures is that the last time the numbers were benchmarked against tax data was 15 months ago. The further that reports move away from benchmarking, the less accurate they are, he said.

September’s survey was based on data from 204 construction companies representing just 9 percent of the people employed in the industry.

And while building permit activity has ramped up, there could be a lag before that begins to translate into more construction work. But another positive sign, Cooke said, is that residential investment is also starting to pick up.

On his blog, Calculated Risk, economist Bill McBride predicts a large increase in housing starts and home sales in 2013 while the National Association of Realtors predicts 1.12 million housing starts next year. McBride also anticipates that residential investment will increase from 2.4 percent to 4 percent of the gross domestic product over the next few years.

Meanwhile, Current Electric Construction remains optimistic that backlogs will grow.

“There’s always a bit of tension if you run out, but that doesn’t seem to be the case right now,” Thompson said. “We’re going to be busy through the end of the year.”

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Oregon’s construction industry added jobs in July but not enough to offset a decrease in employment overall in the state.

The state’s unemployment rate in July rose 0.2 points from June to 8.7 percent, according to a report released today by the Oregon Employment Department. While that’s down from a rate of 9.6 percent a year ago, last month’s numbers follow a fairly stagnant report in June – during which unemployment rose 0.1 percent from May.

The construction industry added 3,700 jobs in July, more than the 2,500 normal seasonal gain for the month. According to the report, modest gains in residential building permits could be fueling some of that activity and may be a precursor for future gains. The statewide 12-month average for permits issued to privately owned housing units was 764 in June – an increase of 144 from June 2011.

Most construction jobs, though, are coming from building equipment contractors, who have seen the most growth of any construction sub-group. Those contractors added 3,000 jobs in the past 12 months, bringing the total to 23,500 people in July; the industry employs 73,900 people in Oregon.

Other industries that added jobs in July include government (up 1,700 jobs) and professional and business services (up 1,300 jobs). Meanwhile, other services dropped by 1,400, educational and health services dropped 1,200 and the manufacturing industry dropped 1,000 positions.

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Oregon employment dropped in February and construction jobs followed suit.

While the state’s unemployment level remained unchanged from January at 8.8 percent, preliminary estimates show the state’s nonfarm payroll fell by 6,400 jobs last month, of which the construction industry lost 2,000, according to today’s report from the Oregon Employment Department.

David Cooke, economist for the department, said the numbers are disappointing given last month’s national employment report, which added a whopping 227,000 jobs across the country. Cooke said Oregon’s revised employment level of approximately 1.62 million is about 10,000 jobs lower than his expectations.

For the construction industry, he said the housing crisis is still characterizing the situation in Oregon.

“There is a tremendous number of homes that ended up in the foreclosure process over the last couple years and that’s going to take another year or two to play out, at least,” he said.

Cooke said the number of single-family and multifamily homes being built is still only a third of what it was during the boom years in ’06 and ’07. Home construction levels are also lower than at any other time in the past 50 years.

While residential building construction traditionally accounts for approximately 10,000 jobs, that number surged to nearly 16,000 in 2007. February saw just 8,100 of these jobs, which is about 500 below the previous two years at the same time.

Nonresidential construction was up 400 jobs to 7,000 in February, but was 2,000 below 2006 through 2008 levels. The trade, transportation and utilities industry and professional and business services industry also saw significant losses in February, losing 2,000 and 1,500 jobs respectively.

And while Cook said housing construction has historically led most recoveries since World War II, the housing bubble coupled with the glut of foreclosed homes has left the construction industry relatively stagnant during the past three years of the official recovery.

“It’s a really unprecedented new home construction bust, nationally,” Cooke said. “It’s a phenomenon that’s characterizing this business cycle.”

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Oregon public schools could be eligible for modernization and infrastructure improvement funds if President Obama’s American Jobs Act is approved by Congress.

According to a released today by the White House, Oregon K-12 public schools will be eligible for $253 million of the $25 billion set aside for improving public schools if the bill is passed as presented to Congress. Additionally, community colleges in Oregon would be eligible for $71.2 million.

White House officials estimate that this money could attract or retain as many as 3,300 jobs.

The money for K-12 schools would be allocated to the state once the bill is passed. The state Department of Education would then have until Sept. 30 to obligate those funds or they would be redistributed to other states.

Oregon would be required to direct half the funding to local school districts on a formula basis, and the other half through an application process in the most high-need districts, with a priority for rural districts.

The money for community colleges could only be used for repair, renovation or modernization of facilities used primarily for instruction and research.

Additionally, $10 billion of the $25 billion would be directed straight to the 100 largest high-need public school districts. No school districts in Oregon or Washington made that list.

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Oregon construction employment in August was up slightly from a month previous, but it’s still trailing its normal seasonal adjustment.

The Oregon Employment Department today released for the month of August, which noted a 2.3 percent seasonally adjusted drop in construction employment from a month previous. At the end of August the state department estimated that there were 69,000 people employed in construction across the entire state.

The construction sector added 700 jobs in the entire month of August. But considering the construction sector usually adds about 2,300 jobs during August due to increased workloads during the good weather, the department figured that it really lost 1,600 jobs when the figure was seasonally adjusted.

While the employment figure for the construction sector is down from a month previous, it’s up 3.3 percent – or 2,200 jobs – from August 2010.

Besides August 2010, when construction employment hit 66,800, the state of Oregon hasn’t seen a construction employment as low as the August 2011 figure since August 1994, when construction employment was at 62,200.

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