BOOM TOWN
The building frenzy in South Florida
is feeding a huge demand for workers in the construction
industry
BY NIALA BOODHOO - Miami Herald
James B. Pirtle Construction Co. has hired 50 new
employees this year, beefing up its workforce by about
30 percent.But that's still not enough to staff the
growing number of projects the Fort Lauderdale company
has taken on. It's hard to dig deep and build fast
enough to keep up with the region's construction boom.
''We probably have at least half a dozen
management-level positions that we're looking to fill
with qualified individuals,'' said Executive Vice
President Mike Geary. The work is out there for every
reputable construction firm, he said.
Florida's job market is still going gangbusters,
growing at a rate of 3.4 percent in November, according
to state figures released Friday. But the construction
industry is doing even better: In November, the state
added 33,300 construction jobs compared to last year, an
increase of 6.6 percent.
Florida is churning out the jobs so fast that its
unemployment rate ranks the lowest among the 10 most
populous states in the nation, according to the state
Agency for Workforce Innovation. The state added 255,100
jobs in November.
And those numbers may be revised upward to be even
stronger, said economist Mark Vitner. If that's the
case, 2005 will be ''the best year Florida has seen,''
he said. He sees no end in sight.
''2006 will be another very good year for Florida,''
he added.
In Miami-Dade County, the November jobless rate was
still at a historic low of 4.2 percent, the same as the
month before. In Broward County, the unemployment rate
was 3.6 percent, slightly higher than October. The South
Florida region grew 2.5 percent, or by 59,300 jobs.
Throughout the state, most of the new work comes in
the professional and business services industry, in
positions as wide-ranging as janitor and senior
executive.
But the growth in the construction industry is
especially strong, outpacing the rest of the job market
since August 2002. At its peak last summer, construction
jobs grew at almost triple the rate of overall jobs.
Now, it's almost double.
The explosion is leading to an acute shortage of
workers, especially for skilled jobs like project
managers, said Len Mills, executive vice president of
the South Florida chapter of Associated General
Contractors. Mills said his member companies are swamped
with all the work going on.
''They can't get enough labor,'' he said.
That means workers are getting paid better, which in
turn leads to rising costs for projects.
''We're seeing construction costs increase at
unprecedented figures,'' Geary said. ``We've seen
materials increase because of the demand. Now the labor
force is also compounding the cost of construction.''
In fact, construction can pay more than the service
industry jobs the region is creating in such large
numbers. While construction laborers are paid on average
about $12 an hour, project managers have starting
salaries of $35,000 but can easily go into six figures.
And they no longer work just on the condos that are
sprouting all over Miami. The boom has spread to public
works projects -- everything from schools to firehouses
-- to cater to a growing population.
Florida is adding close to 1,000 people a day,
economist Vitner estimates.
Hurricane repair is also keeping the construction
industry with its hands full, he said.
So what happens when -- if -- the real estate market
slows down?
Possibly not all that much, for the labor market, at
least immediately, Vitner says. There's enough backlog
of hurricane repair to keep the construction industry's
hands full for a while to come, he said.
''If we were to see a slowing of the housing
industry, there are many people who would be relieved,''
he said. ``Maybe they could find someone to fix their
roof.''
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