Amid numbers that show growth in the construction industry nationwide in January, new data shows that Boston-area construction employment grew by 7,400 jobs from December 2017 to December 2018.

Nationally, construction employment increased by 52,000 jobs in January and by 338,000 jobs, or 4.7 percent, over the past year, while the latest reading on construction spending showed moderate increases in all major categories, according to an analysis of new government data by the Associated General Contractors of America.

A survey of construction employment, whose release was delayed by the partial government shutdown, shows the number of construction industry jobs in the Boston area grew from 114,500 to 121,900, or 6.46 percent.

“There has been no letup in demand for construction projects – or workers,” Ken Simonson, chief economist for the Associated General Contractors of America, said in a statement. “Even though the industry added employees at more than double the pace of the overall economy in the past year, the average workweek in construction reached an all-time high and unemployment in construction hit a series low, indicating that contractors would hire even more workers if they were available.”

Construction employment totaled 7.46 million jobs in January, the most since January 2008. A report on construction spending – delayed a month by the partial government shutdown – showed an increase of 0.8 percent from October to November and 4.5 percent year-to-date for the first 11 months of 2018 combined compared to the same period in 2017. Year-to-date spending rose by 3.9 percent for residential construction, 3.5 percent for private nonresidential construction and 7.0 percent for public construction.

Average weekly hours in the industry increased to 39.9 hours in January, the highest since the series began in 2006, the economist noted. Average weekly hours of production and nonsupervisory employees, a series that dates back to 1947 and covers construction trades, set a record of 40.6 hours, Simonson added.

The unemployment rate for jobseekers with construction experience in January was 6.4 percent, down from 7.3 percent in January 2018. The number of such workers fell to 638,000 from 707,000 a year earlier. Both figures were the lowest for January since those series began in 2000, Simonson pointed out.

In a survey the association released in January, more contractors reported they expect the dollar volume of projects available to bid on to expand than to shrink in 2019 in each of 13 project categories. In Massachusetts, 86 percent of contractors expected to add to their headcount this year, with 38 percent expecting to hire one to 10 people, 18 percent expecting to add 11 to 25 people, and 29 percent expecting to add 26 or more. Eighty-one percent of survey respondents said they were having a hard time filling positions, however, and 63 percent said it will continue to be heard to hire people or would become harder. Sixty-eight percent said they had increased incentives, pay and other compensation in response, including 38 percent who said they had increased base pay rates. The impact has driven costs up, respondents said, with 25 percent saying they have increased the prices on bids or contracts and 21 percent saying projects are taking longer to complete.

Nationally, 79 percent of construction firms reported that they expect to add employees in 2019. However, nearly as many – 78 percent – reported they were having trouble filling some positions and 68 percent said they expected that hiring would remain difficult or become harder. Association officials cautioned, however, that contractors’ expansion plans could be thwarted if Washington officials fail to fund more career and technical education to prepare more individuals for construction careers and to allow firms that document a shortage of qualified workers to bring in workers from outside the U.S.

“The pool of unemployed workers with construction experience has virtually evaporated, and everyone in the industry is working longer hours than ever,” Stephen E. Sandherr, the association’s CEO, said in a statement. “The only way to satisfy the demand is to provide more people with the skills needed to work in construction and to expand the nation’s labor force with qualified workers from outside our borders.”

Boston Construction Jobs Grow by 6.46 Percent

by Banker & Tradesman time to read: 3 min
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