Contractors feel recruitment pinch as US construction unemployment continues to fall

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US contractors are finding it increasingly difficult to recruit workers as the unemployment rate for construction continues to fall.

That’s according to new analysis from the Associated General Contractors of America (AGC), which found that construction employment increased in 64% of metro areas between May 2022 and May 2023.

Employment in the sector was up in 230 metro areas out of a total of 258.

The areas to add the most construction jobs were:

• Dallas-Plano-Irving, Texas (11,600 jobs or 8%)
• New York City (9,600 jobs, 7%)
• Columbus, Ohio (6,100 jobs, 13%)
• Atlanta-Sandy Springs-Roswell, Ga. (6,000 jobs, 4%)
• Portland-Vancouver-Hillsboro, Ore.-Wash. (6,000 jobs, 7%)

Construction jobs declined over the year in 79 metro areas and were unchanged in 49 areas.

The largest losses occurred in:

• Houston-The Woodlands-Sugar Land, Texas (-5,400 jobs, -2%)
• St. Louis, Mo.-Ill. (-5,100 jobs, -7%)
• Los Angeles-Long Beach-Glendale, Calif. (-4,700 jobs, -3%)
• Miami-Miami Beach-Kendall, Fla. (-3,900 jobs, -7%)

Ken Simonson, the association’s chief economist, said, “While nearly two-thirds of metro areas added construction jobs in the last 12 months, the total would have been higher if contractors could find qualified workers.

“But with a construction unemployment rate in May of only 3.5%, there are very few suitable candidates available in many markets.”