Construction firms added 17,000 jobs in May and 273,000 during the past 12 months as the sector’s unemployment rate fell to 6.7 percent, the lowest May rate since 2006, according to an analysis by the Associated General Contractors of America. AGC officials said that the job gains come as the private and public sectors are increasing investments in construction services.
“Construction employers continue to expand headcount as they adjust to growing demand for their services in many parts of the country,” said Ken Simonson, AGC’s chief economist. “Right now the two most likely obstacles to the industry’s continued expansion are growing labor shortages and political gridlock that could curtail public sector investments in infrastructure and construction.”
Construction employment totaled 6,387,000 in May, compared to 6,370,000 in April and 6,114,000 in May 2014, Simonson added. Construction employment is at the highest level since February 2009. Residential building and specialty trade contractors added 8,500 jobs since April and 140,300 jobs during the past 12 months.
Nonresidential contractors – building, specialty trade, and heavy and civil engineering construction firms – hired a net of 8,600 workers for the month and 124,000 since May 2014, a 3.3-percent hike.
Association officials added that the two most obvious threats to future construction growth are tight labor markets and political gridlock that could curtail public-sector construction spending. They urged Congress to act quickly to fund and pass surface transportation legislation to invest in the nation’s aging roads, bridges and transit systems.
