April better for construction jobs than previous years

Posted by IronPlanet on May 8, 2012 7:16:00 AM

Despite a drop-off in jobs over the past few months, the construction industry is still in a much healthier state than it has been in previous years, according to new data released by the Associated General Contractors of America (AGCA).

Like nearly all other industries, the construction industry was hard hit by the recession, but AGCA chief economist Ken Simonson points out that construction jobs have been affected in ways other industries haven't. Construction jobs began disappearing in 2006 - nearly one year before the recession officially hit. The unemployment rate for construction workers did not officially "hit bottom" until February 2011, which was nearly a full year after many other industries.

Due to this trend, many construction workers have moved on to other industries. Since April 2011, the industry has actually added 63,000 jobs, but not all of the workers who were laid off are coming back.

"It is tough to attract and retain workers when employment gains are so spotty," said Simonson. "With workers finding jobs in other industries, retiring or returning to school, contractors face a potential shortage of skilled workers in a year or two."

The beginning of the year has been slightly less encouraging, with jobs lost in February, March and April. However, the latest data for April 2012 shows an unemployment rate of just 14.5 percent for the industry - the lowest rate for April in four years. Overall, things are better than they were for those seeking a job in construction.

That being said, the AGCA criticized the federal government for a lack of spending on construction projects. Federal lawmakers have cut funds for construction projects in transportation, water and building infrastructure, leading to fewer jobs for contractors and their employees.

Contractors that have weathered the economic storm will still need to save money in the future. One way to do this is through buying used construction equipment. The online auction site IronPlanet offers a wide array of equipment, often at a more affordable price than buying new.

Topics: Construction, Industry Headlines