Grab your hard hat: Arizona construction industry sees high employment growth rate

More than 15,000 construction jobs have been created so far in 2018, with 900 added in the month of August alone.

According to the Arizona Office of Economic Opportunity’s (AOEO) monthly employment report, construction saw the largest private-sector employment growth of any industry.

Private-sector employment as a whole grew by 76,100 since last year, with construction making up less than 7 percent of total employment. Since August 2017, construction employment grew at a rate of 10.2 percent, compared to a 3.2 percent increase for the rest of the private-sector.

According to Tom Dunn, President and CEO of Arizona Builders Alliance, he is not surprised by the growth of construction jobs.

“The development of both public and private projects allows for these industries to get to market and provide these in-demand goods and services to the marketplace,” Dunn said. “Positive changes to the tax code, lessening of the regulatory burdens, public & private sector expansion, historically low interest rates, the availability of investment capital worldwide. [These] pro-business and pro-growth policies are impactful towards economic prosperity.”

In fact, Dodge Data and Analytics reports that the number of residential construction projects has gone up 11 percent over the past year.  

According to Doug Walls with the AOEO, the growth within construction positively impacts multiple industries around the Arizona economy, including more jobs in plastics, millwork, home centers, hardware stores, nursery and garden centers, and other building material dealers.

AOEO also reports that overall Arizona’s unemployment rate stayed at 4.6 percent in both July and August of 2018 and the state gained 64,300 nonfarm jobs in August, making it the highest post-recession average gain.The private-sector recorded a net gain of 23,000 jobs, which is also the highest post-recession average gain.

To see the full report, click here.