Page 63 - BusinessWest February 21, 2022

In Search of Workers
Construction Employment Dips Despite Record Rise In Wages
Construction employment dipped by 5,000 jobs between December and January even though hourly pay rose at
a record pace in the past year, according to an analysis by Associated General Contractors
of America of government data released last week. Association officials said future job gains are at risk from several factors that are slowing projects.
“Contractors are struggling to fill positions
as potential workers opt out of the labor market or choose other industries,” said Ken Simonson, the association’s chief economist. “In addition, soaring materials costs and unpredictable deliv- ery times are delaying projects and holding back employment gains.”
Simonson noted that average hourly earn- ings in the construction industry increased 5.1% from January 2021 to last month, the steepest 12-month increase in the 15-year history of the series. The industry average of $33.80 per hour exceeded the private-sector average by nearly 7%. However, competition for workers has inten- sified as other industries have hiked starting pay and offered working conditions that are not pos- sible in construction, such as flexible hours or work from home.
Since January 2021, the industry has added 163,000 employees despite the decline last month. But the number of unemployed job seek-
ers among former construction workers shrank by 229,000 over that time, indicating workers are leaving the workforce altogether or taking jobs in other sectors, Simonson added.
Construction employment totaled 7,523,000 last month, which was 101,000 (1.3%) fewer jobs
the pre-pandemic peak set in February 2020. In contrast, employment in residential construction — comprising home-building and remodeling firms — edged up by 4,400 jobs in January and topped the February 2020 level by 112,000.
Association officials said the Construction Hiring and Business Outlook
KEN SIMONSON
“Contractors are struggling to fill positions as potential workers opt out of the labor market or choose other industries.”
survey it released in Janu-
ary showed most contractors expect to add employees in 2022 but overwhelmingly find it difficult to find qualified workers.
“Construction firms are struggling to find workers to hire even as they are being forced to cope with rising materials prices and ongoing supply-chain disruptions,” said Stephen Sandherr, the association’s CEO.
than in the pre-pandemic peak month of Feb- ruary 2020. However, he noted, the totals mask large differences between residential and non- residential segments of the industry.
Non-residential construction firms — general building contractors, specialty trade contractors, and heavy and civil engineering construction firms — lost 9,000 employees in January. Non- residential employment remains 213,000 below
Speaking of which, construction materials jumped nearly 20% in 2021 despite moderat- ing in December, according to an an association analysis released last month. An association sur- vey shows that contractors rate material costs as a top concern for 2022.
“Costs may not rise as steeply in 2022 as they did last year, but they are likely to remain vola- tile, with unpredictable prices and delivery dates
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