Construction unemployment falls to lowest June level in five years

The unemployment level in the U.S. construction industry fell to its lowest June level in five years — below what has been a double-digit rate since 2008.

According to an analysis of new government data by the Associated General Contractors of America, construction unemployment fell to 9.8 percent in June as every segment of the industry added employees. The rate was 12.8 percent in June 2012 as the number of unemployed construction workers dropped by 214,000 to 825,000.

Even amid the improvement for the industry, AGC officials warn that employment is still down 25 percent from its peak more than seven years ago and that worker shortages could spread in coming days without vocational education and immigration reforms.

Despite experiencing modest gains in recent months, the number of construction jobs in New Mexico is still sitting at 16,000 below its peak level, when 59,600 were employed in the industry in June 2006.

“Many of those laid-off workers have left the industry — whether for employment elsewhere, more education or retirement — and construction companies face a looming worker shortage,” AGC Chief Economist Ken Simonson said in a news release. “The number of unemployed workers with construction experience has fallen to low enough levels that firms in a growing number of locations and segments are having trouble finding people with the needed skills. Contractors have filled the gap so far by adding to workers’ hours but this ‘solution’ may be reaching its limit.”

Association officials are urging education leaders to rebuild skills-based, or vocational educational programs to prep students for careers in construction and manufacturing. They are also urging Congress and the Obama administration to reject caps on the number of construction workers that are included in the Senate’s immigration legislation.

Source: Albuquerque Business First