New builds are booming in Orange County, increasing demand and creating a need for more labor. Construction laborer wages grew an average of 7% per year for the past two years and 30% over wages at the dawn of the recession in 2007. Despite wage increases, companies are struggling to hire sufficient labor. Total employment is 29% below the prerecession high (see graphic, opposite), and the demand for new multifamily and office buildings makes it difficult for contractors to keep up.
In 2014, the state Economic Development Department forecasted a 26.3%, or 3,430, increase in construction laborers over the following 10 years, and 5,000 new jobs in the industry, including laborers and managers. With a continually recovering economy and the recent multifamily construction boom, 2,900 construction jobs were added in Orange County over the year ended in June, above the EDD forecast of an average of 500 a year. High demand for new buildings, paired with added pressure to hire workers, will drive construction industry employment.
Last year, the Bureau of Labor Statistics forecasted over 800,000 industry jobs would be added nationwide in the decade ending in 2026. A few Orange County insights can be taken from the forecast. First, demand for more residential and nonresidential buildings here increased pressure on the industry. Second, wages have started to increase enough to attract workers but still lag demand. Third, until wages grow enough to draw large numbers of laborers, building costs will keep rising. And lastly, the projected industry jobs increase signifies a positive long-run outlook for Orange County, when supply keeps up with demand and building costs stabilize.
— Analysis by CBRE Group Inc.
