Dive Brief:
- An Associated General Contractors of America analysis of Labor Department data found that 25 states and Washington, DC, added construction jobs in December, a four-state decline from November. For the full year 2016, 32 states added jobs, down from 44 in 2015.
- Arizona (2.7%) and Massachusetts (2.5%) were tied at 3,700 new jobs for the most positions gained from November to December (3,900 jobs; 0.5%), and Vermont added the biggest percentage (5.9%; 800 jobs). Florida bumped California from the year-over-year top spot with an increase of 22,300 (5.1%), while Nevada, once again, had the biggest year-over-year percentage increase (15.3%; 11,000 jobs).
- From November to December, California lost the most jobs (-5,700 jobs; -0.7%), and North Dakota dropped the biggest share (-7.7%; -2,500 jobs). Illinois gave up the most jobs year over year (-9,700 jobs; -4.5%), with North Dakota (-7.4%; -2,400 jobs) and Alabama (-7.4%; -6,100 jobs) shedding the highest percentage.
Dive Insight:
Despite the dip in month-to-month job growth, the results of a recent AGC survey, released earlier this month, found that 73% of firms expect to expand their workforce this year due to increased demand. The same percentage, however, responded that they were having difficulty finding qualified help, and 76% believed that the labor market would only get tighter in 2017.
The AGC noted that while other sectors were expected to grow, according to the survey, the responses of about 1,300 companies were somewhat predicated on the anticipated increase in infrastructure construction proposed by President Donald Trump, as well as a potential rollback in general business and healthcare regulations.
Aside from requesting that the new administration revisit the regulations that have significant impacts on the construction industry, such as a federal push for the use of project labor agreements under certain circumstances, the organization has also urged the Trump administration to make career training and workforce development a part of any new construction spending program, especially his $1 trillion infrastructure investment proposal.
The AGC and other industry groups have long advocated for an increase in federal funding for trade and career training so that there will be a strong, skilled labor pipeline to meet the demands of increased construction activity, as well as to fill in the gaps left by older workers who are nearing retirement.