On April 1, 2016, the Bureau of Labor Statistics released its summary of job activity for March 2016 and the numbers for the construction industry are very promising. Construction added 37,000 jobs in March 2016, and Engineering News-Record indicates that the overall unemployment rate for construction has dropped from 9.5 percent in March 2015 to 8.7 percent in March 2016. This news offers a lot of speculation from experts who are waiting for the threshold where supply and demand causes construction wages to go up.
A Lot Of Construction Jobs Added In 2016
The BLS indicates that the construction industry has added 301,000 jobs from March 2015 to March 2016, which helps to keep construction at the top of the list of industries adding jobs. The economy overall added a total of 215,000 jobs during March 2016, which shows how the falling unemployment rate in construction is partially a result of the overall good health of the American economy.
Construction Outgains The Rest
The gain in jobs for construction in March 2016 was ahead of all other business sectors, and it showed the greatest gain in specialty contractors. For just the month of March 2016, specialty contractors added 18,100 jobs, with heavy construction in the civil engineering trade coming in second with 11,200. There were also significant gains in residential construction throughout the country, which means that people can start to expect the housing shortage in the United States to be eased a bit.
The construction industry is offering a sense of security for workers that has not been seen since before 2008.
Demand Is Outpacing Supply
While the dropping unemployment rate in the construction industry is great news for the entire economy, it is shining a spotlight on a problem that has been growing in the industry for a little over a year. Unfortunately for contractors, the talent pool in the construction industry is not quite as deep as they need it to be. While the unemployment rate is dropping, the number of new job openings that may never be filled is increasing.
According to ForConstructionPros.com, the open position rate for the first quarter of 2016 was up 2.3 percent compared to the same period in 2015. In February 2016, the number of people quitting construction jobs jumped 1.5 percent when compared to February 2015. The number of unfilled construction jobs jumped to 193,000 in February 2016, this is 16,000 jobs higher than the peak of this problem in May 2015.
Despite the struggles construction companies are facing in maintaining their hiring pace, the prospects for the construction industry are extremely bright. It is estimated that the construction industry is increasing employment at a rate that is twice that of the rest of the American economy. For the foreseeable future, the construction industry is not only showing strong signs of stability, it is showing a sustained ability to grow for the future.
When you need to stay up to date on the latest construction information, including statistics on the growth of the construction industry, then you need to get involved with PDH Contractors. You can browse courses by state on the PDH Contractors website and find the information you need to grow and manage your construction business.