Simonson Says: Who Ya Gonna Believe – Your Own Eyes or the Data?

For several months, contractors have been reporting difficulty finding skilled labor. Of the 686 individuals who replied to an AGC member survey conducted in August, nearly three-quarters said they were having trouble filling some craft positions. More than half said they were having difficulty finding some professionals, especially project managers/supervisors (49 percent) and estimators (35 percent). A recent survey by the National Association of Home Builders also turned up widespread reports of hiring difficulties. Construction jobs data for the U.S. and for many states show improving job markets but little evidence of tightness. For the past six months, industry employment compared with a year earlier has increased by more 3 percent. That is the fastest growth since early last year but below the rate of 2004-2006, when the industry last experienced worker shortages. Construction employment increased in 39 states from October 2012 to October 2013—the most states with rising employment since April 2012. But only two states—North Dakota and Louisiana—have exceeded their prerecession peaks. No other state is even within 5 percent of its record high. The unemployment rate for experienced workers who were last employed in construction and who were actively seeking work in mid-October was 9.0 percent. That was well above the 7.0 percent rate for all workers (not seasonally adjusted) and might indicate there are still plenty of trained workers available in most of the country. However, the rate has dropped by half in the past three years, representing a decrease of 712,000 former construction workers from the unemployment rolls. In that time, the construction industry has added only 323,000 workers (new or experienced), suggesting that most of the unemployed have gone into other industries, retired or left the work force. AGC and its chapters are working to address current and potential skilled-labor shortages on many levels, including Congress, regulatory agencies, local schools and apprenticeship programs. Meanwhile, members help us track the situation. Please write simonsonk@agc.org if you are experiencing difficulty filling any positions. And please fill out the next AGC survey on business and hiring conditions. Look for it in your inbox late next month.