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Construction unemployment hits 14-year low, worker shortage a concern

August 10, 2015

Construction employment in July totaled 6.38 million in July, the highest level since February 2009, according to an analysis of US Department of Labor data released today by the Associated General Contractors of America. The number of unemployed workers with construction experience also shrank to a 14-year low, and Associated General Contractors officials cautioned that the diminishing pool of available qualified labor may be having an impact on the industry’s ability to meet growing demand.

The number of unemployed workers who reported last working in construction totaled 474,000, the lowest amount since 2001.

“It is encouraging to see construction employment rising again, but the industry could hire many more workers if they were available,” said Ken Simonson, the association’s chief economist. “The lack of experienced construction workers may be impeding the industry’s ability to start or complete new projects. The recent acceleration in construction spending may soon level off unless the sector can draw in more workers with the right skills.”

Overall construction employment rose by 6,000 from June to July, far below the monthly average of 19,250 between July 2014 and July 2015, Simonson noted. Meanwhile, employment at architectural and engineering services firms climbed by 3.6% since July 2014, suggesting that more workers are being hired to design future construction projects, he noted.