Recent statistics show that the construction industry in the United States is seeing an enormous spike in employment as of March 2024 despite significant labor shortages.
This notable upswing demonstrates the industry's resilience in the face of ongoing challenges and underlines its critical role in generating economic development and recovery.
(Photo : Pexels/Kawser Hami)
Increase of Construction Employment in the US
Among the 358 metropolitan regions in the United States, the total number of employment that increased is 234, which is equivalent to 65%. Even while businesses are still looking for enough people, officials from the association have observed that the demand for various projects, including manufacturing, data centers, and infrastructure, is continuing to increase in many regions of the country.
Between March 2023 and March 2024, the cities of Riverside-San Bernardino-Ontario, California, and Baton Rouge, Louisiana, added the most construction employment, with each city adding 6,200 jobs, which is equivalent to a 6% and 13% increase, respectively. Other metropolitan regions that have experienced significant increases in employment include the metropolitan areas of Fort Worth-Arlington, Texas, with 5,700 jobs (7%) Phoenix-Mesa-Scottsdale, Arizona, with 5,200 jobs(13%) and Detroit-Dearborn-Livonia, Michigan, 5,000 jobs (22%)
Ken Simonson, the association's chief economist, stated that the general construction market is still robust and that many businesses are continuing to expand their payrolls even though high lending rates and post-COVID work patterns are lowering the need for some types of projects. However, most companies need help finding enough people to meet their needs because the currently available pool of competent workers is insufficient to meet the demand. Nevertheless, certain things have been asserted, such as the construction industry experiencing a loss in employment.
Several construction companies are opting not to submit bids for projects because they need more employees to complete the work, according to officials from the association. It has been cautioned that this could restrict competition for crucial economic development and new infrastructure initiatives. They formally requested that the Biden administration and Congress increase financial support for building education and training initiatives and enact immigration system reforms.
As per Jeffrey D. Shoaf, the association's chief executive officer, points out, policymakers have spent decades undermining once-strong construction education programs. Therefore, even if Congress takes action imminently, revitalizing these programs will take some time. Until then, reasonable immigration reform measures can allow more people to legally enter the country, where they can find employment in the construction industry and realize the American dream.
Also Read: A Step-by-Step Guide to DIY Drywall Installation
Construction Market Size
In 2023, the size of the construction market in the United States (US) was $2.3 trillion. As mentioned, due to the investments in the transportation, energy, housing, and manufacturing sectors, the market is expected to attain an annualized growth rate (AAGR) of more than 4% between 2025 and 2028.
The construction industry research report for the United States provides in-depth insight into the many projects and construction activities carried out in the country. It analyzes the mega-project pipeline, particularly emphasizing the development stages, players, and listings of big projects that are now in the pipeline.
The study on the market goes on to analyze the most critical segments of the construction industry and the factors driving their expansion. In addition to examining the construction projects' complexities, analysts have expounded upon emergent trends and evaluated significant risks and opportunities that will impact the growth of the United States construction market in the coming years.
Related Article: Arizona's Construction Industry Flourishes Amid Inflationary Pressures
