Early lag in 2016 stunts Michigan construction

Construction employment in May was up in Michigan compared to a year ago, but the momentum that was starting to build at the start of 2016 has come down with a case of the blahs.

Michigan's construction industry was employing 151,100 workers in May 2016, 3,000 more (+2 percent) compared to May 2015. That ranked our state No. 32 in construction job creation, one of 39 states to see its employment increase during that time.

However, construction employment in Michigan has been fading this year even as the weather has been warming: industry jobs peaked at 155,800 in February and have declined since.

"With construction demand remaining high and construction unemployment getting lower, the slowdown in monthly hiring probably has a lot more to do with a lack of workers than it does a lack of work," said Ken Simonson, chief economist for the AGC. "Overall the construction market appears robust and as long as most firms can find qualified workers."

Hawaii added the highest percentage of new construction jobs during the past year (19.7 percent, 6,700 jobs), followed by Iowa (13.4 percent, 10,400 jobs), Nevada (10.1 percent, 6,900 jobs) and Idaho (3,400 jobs, 8.9 percent).

Among the biggest losers for jobs during the 12 months from May 2015 to May 2016 were North Dakota (-3,700 jobs, -10.5 percent); West Virginia (-2,700 jobs, -8 percent) and Kansas (-3,400 jobs, -5.6 percent).

AGC officials said that considering the low overall unemployment rate for the sector and continued strong demand for most types of construction activity, the fact a majority of states lost construction jobs for the month likely occurred because many firms are having a hard time finding qualified workers to hire.

They noted that 70 percent of firms reported this year they are having a hard time finding qualified workers, although a survey by The Association of Union Constructors did not see shortages as nearly that high.

State's jobless rate is exactly average

Michigan's 4.7 percent unemployment rate for May is tied for 25th lowest in the country, about as average as you can get among the 50 states, according to June 17 information released by U.S. Bureau of Labor Statistics (BLS).

However, Michigan was one of four states to see "statistically significant" over-the-month decreases in payroll employment, with 12,700 fewer jobs, or .3 percent fewer jobs, reported from April to May, the news service MIRS reported.

From May 2015 to May 2016 Michigan reported a 1.9 percent increase in payroll jobs. South Dakota and New Hampshire had the lowest jobless rates in May -- 2.5 percent and 2.7 percent, respectively.

Alaska had the highest unemployment rate of 6.7 percent.