Construction employers added 48,000 jobs in December and 290,000 for the year, the largest annual increase since 2005, as the sector's unemployment rate fell to 8.3 percent, according to the Associated General Contractors of America.
Association officials said many firms are expanding payrolls to keep pace with growing construction demand, but are having a hard time finding qualified workers to fill key positions.
According to the AGC report, construction employment totaled 6,166,000 in December, the highest level since March 2009, with a 12-month gain of 290,000 jobs or 4.9 percent. Residential building and specialty trade contractors added a combined 13,500 employees since November and 132,100 (6 percent) over 12 months. Nonresidential contractors hired a net of 34,400 workers for the month and 158,200 (4.3 percent) since December 2013. The heavy and civil engineering construction segment, which includes pipelines, petrochemical and power plants, and public works construction, added 11,600 jobs in December and 57,900 (6.6 percent) over the year.
"Construction firms are clearly ramping up their hiring to keep up with swelling demand for construction," said Ken Simonson, AGC's chief economist. "Demand for workers to construct apartments, pipelines and huge industrial projects is likely to remain robust in 2015."
That wasn't the only good employment news released this week. Total nonfarm payroll employment rose by 252,000 in December, and the unemployment rate declined to 5.6 percent, the U.S. Bureau of Labor Statistics reported. Job gains occurred in construction and manufacturing, as well as in professional and business services, food services and drinking places, and health care.
In December, manufacturing employment increased by 17,000, with durable goods (+13,000) accounting for most of the gain. Manufacturing added an average of 16,000 jobs per month in 2014, compared with an average gain of 7,000 jobs per month in 2013.
The BLS report indicated the unemployment rate declined by 0.2 percentage point to 5.6 percent in December, and the number of unemployed persons declined by 383,000 to 8.7 million. Over the year, the unemployment rate and the number of unemployed persons were down by 1.1 percentage points and 1.7 million, respectively.
