We are slowly recovering from the effects of the economic crisis. The economy of the country is now at a much better place than it had been for the past few years. This has had an effect on all the major industries, including the construction industry. This industry is seeing record employment rates, with unemployment at its lowest the past decade.
The reason for the low employment rate since 2008, was not due to lack of construction jobs. Construction firms believe they would have hired more construction workers if they could find some. The problem was a severe lack of education in the construction sector. They are actually urging educators to encourage students to consider construction jobs that offer high salaries.
Employment Rate Construction Jobs
The employment rate has been skyrocketing this year. Seven months into this year, the construction industry has seen an increase of over 19,000 construction jobs. Over the course of the past year, the number of jobs has increased by over 300,000. This makes 2018 the year with the highest employment rates in the last 10 years. This year has also seen the lowest unemployment rates in the construction industry. These are the statistics obtained after analyzing new data from the government. Associated General Contractors of America (AGCA) dissected the data to find out the specifics of the employment situation in the field of construction. The officials from the Association said there would have been more people hired during this time but there were very few qualified professionals in the field.
According to the chief economist at the AGCA, the industry has hired workers at three times the rate of the economy. There are more jobs in the residential and non-residential construction sectors. Contractors are finding it difficult to source workers although the pay in construction is higher than it used to be. It is also offering great career advancement opportunities than ever before.
The total number of people employed by the construction industry in the United States for the month of July was roughly 7,240,000. This is the highest it has been since May of 2008. Over the course of the last year, it has increased nearly 4.5%. The chief economist, Ken Simonson, pointed out that the number of jobs in the industry grown significantly every year. It has, in fact, increased almost three times the 1.6% rise of the total payroll employment.
Increase in Hourly Rates
There has been an increase in the average per hour salary for construction jobs as well. The salary is now averaging almost $30 per hour. This is over 3% higher than just a year ago. Considering all the non-farm, private sector jobs, the average wage for construction jobs is 10.4% higher. The non-farm private sector jobs have seen an increase of almost 3% in the last year alone. The average over is $27 per hour.
The unemployment rate for people who have experience in the field of construction was at 3.4 % in July. This was more than a percent lower than what it was last year. July 2017 saw the unemployment rate for construction workers at almost 5%. A year before that, in July 2016, the unemployment rate for people with construction experience was 4.5%.
These numbers indicate that the employment rate in the construction industry is as good as it has ever been. Simonson is of the opinion that the industry is operating near optimal.
The residential construction sector has seen plenty of growth. It consists of specialty trade and residential building. The number of jobs in this sector increased by over 6,000 in the month of July alone. Over the course of the last 12 months, it has seen an increase of over 5%. That is almost 140,000 jobs added in a single year!
The employment rates in commercial and non-residential construction increased even further. July saw an increase in the number of jobs by over 13,000. Over the course of the past 12 months, there was an increase of almost 170,000 new jobs. Based on statistics this is a 4% increase.
Construction Officials Caution
Officials from the Associated General Contractors of America are cautioning the industry. The fact that there is a shortage of workers who have the right qualifications is becoming an obstacle. While there are still more jobs to be created in the field, it is unlikely that the number of jobs will increase. The firms want to hire individuals who have the proper skills and the education for high end construction jobs.
There is a federal career and technical education measure that has been enacted recently. It is going to focus on providing the officials in charge of education with more funding and flexibility. This will allow educators to create educational programs focused more on construction. The issue is that many people are too hesitant when it comes to entering the profession of a construction worker. This is because construction jobs are considered to have a reputation. They are not considered high-paying jobs, although that has changed now. Additionally, there is not a lot of awareness about the opportunities for career growth in construction jobs right now.
Setting up formal educational programs for the construction industry will help eradicate the problem. It will increase the awareness, allowing further growth and career advancement in the construction industry.
We Know Construction Jobs
Now with the increasing construction industry, many firms might be looking to capitalize on the changing dynamics. Employment has hit a 10-year high and it’s bound to get better as we go along. When you have more construction jobs, not only do you need more employees, you need more equipment.
Of course you need to transport all the people and the equipment to the new job sites, right?
Partnering with Summit Fleet will mean that and much more for you. There are several advantages to working in synergy with Summit Fleet regarding your construction fleet. These include:
- Job site delivery and pick up anywhere in the United States
- Help finding the right truck for the job
- Increase or decrease the size of the fleet at any time
Call us for a Quick Quote at 888-58-FLEET (888-981-9598).
Sources:
https://www.agc.org/news/2018/08/03/construction-employment-reaches-10-year-high-industry-adds-19000-jobs-july-and
https://summitfleet.com/truck-rentals/industries/construction/
