Construction Employment Stalls Month-on-Month, but Shows Top Gains Since June 2015

Words: Dan KamysAccording to analysis by the Associated General Contractors of America, construction employment was stagnant from May to June 2016, but hourly pay increases and longer workweeks, along with fewer unemployed construction workers, suggest contractors would hire more workers if they were available. As a result, association officials urged Congress to pass legislation to reform and increase funding for career and technical education. Construction employment totaled 6,643,000 in June, matching the level in May. Industry employment dipped by 6,000 in April and 16,000 in May. Average hourly earnings (wages and salaries for all workers) increased 2.8 percent in construction over the past year to $28.13 in June. Both earnings and average weekly hours for all construction workers—39.2 hours in June—have increased in the past three months, even though employment tapered off. Unemployed jobseekers in June who last worked in the construction industry and the unemployment rate for those individuals were the lowest June levels since 2000. Residential construction added 2,300 jobs in June and 134,000, or 5.5 percent, compared to a year ago. Meanwhile, non-residential construction lost 1,500 jobs for the month but gained 83,000 employees compared to June 2015, a 2.1 percent rise. Association officials said the data indicates that shortages of qualified workers are undermining the construction sector's growth. They urged Congress to reauthorize and reform the Carl D. Perkins Act to provide both flexibility and funding for more career and technical education programs in schools to prepare future construction workers. For more details, visit AGC of America.
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