Construction hiring seemingly halted in the U.S. in August, as continued concern about the economy and rising home prices have created consternation throughout the industry, potentially harming additional growth in other sectors.
Bureau of Labor Statistics information from the previous month revealed that construction, along with other major industries, saw little or no change during the month of August, according to Fox Business. This largely stems from many companies trying to be more productive with fewer workers, as higher taxes, new regulations and future uncertainty surrounding payrolls, as well as a slowdown in buildable lots for new home construction, have created a more difficult job market.
This also relates to the current housing recover having fallen behind where it should be, while labor shortages, lending standards and interest rate hikes have created additional frustrations within the sector.
The skills gap may play an additional role, according to the San Francisco Business Times. Seventy-four percent of firms surveyed by the Associated General Contractors of America reported that hiring has become a challenge, and experts told the news source the picture is likely to worsen in future years. Many contractors cut workers because of the recent recession, and many are now not prepared for its speedy recovery.