As economists try to get a feel for whether the country is heading into a late 2023 recession, the construction industry is thriving, as judged by the most recent reported employment levels.
According to data just released by the Washington-based Associated General Contractors of America, the industry’s job count was up in 45 states, as well as the District of Columbia last month over August of 2022.
The figures show gains in every region of the country with some of the nation’s largest states adding the most employment: Texas was up by 21,000, followed by California with 15,600 jobs, Ohio at 11,600 jobs, along with an increase of 10,600 jobs in Georgia.
On just a percentage level, Wyoming in August led the nation with a 13% job increase. Arkansas saw a 9.9% jump, followed closely by Kentucky, enjoying an increase of 9.2%. New Mexico was among the strongest percentage gainers with a 7.3% increase.
The August numbers, said Ken Simonson, chief economist with the Associated General Contractors, are providing only the last evidence that “construction has been a leading source of employment growth almost universally in the past year.”
Reflecting a general state of affairs in the industry nearing the final quarter of 2023, Simonson added that “Contractors report needing even more workers as large projects rev up across the country.”
But problematic for many contractors is the challenge of trying to find qualified workers. A separate survey by the AGC noted that some 85% of responding construction firms said they currently had open positions, but of that group nearly 90% said it remained difficult to find experienced, qualified people, particularly among the vital craft workforce.
Additional figures: 68% said applicants simply lacked the skills to work in general construction, while around 33% indicated that job candidates were unable to pass a drug test.
In response, many construction firms are embracing new approaches to finding workers. The AGC survey noted that 63% of respondents said they are using social media and targeted digital advertising to attract young applicants.
Contractors, according to the AGC narrative accompanying the survey, are “also increasing investments in their internal training programs in an effort to address the fact that many candidates lack the basic hard and soft skills needed to be successful.”
Of this group, some 41% of firms have increased spending on training and professional development programs, while 24% have enhanced their online and video training protocols. A smaller 14% are even using “augmented and virtual reality technology to better train workers.”
By Garry Boulard
