ARLINGTON, VA—As a measure of the uptick in development nationally, the Associated General Contractors of America reported Wednesday that 25% of construction firms are turning away business because of labor shortages. The AGC also said that year-over-year employment in construction expanded in 223 metro areas, declined in 72 and was stagnant in 44.

“Many construction firms looking to expand their payrolls are finding a surprisingly tight labor market,” says Ken Simonson, chief economist with AGC. “These expanding labor shortages threaten to impact construction schedules as firms struggle to find enough qualified workers.”

A survey conducted by SmartBrief in partnership with AGC found that over the past year, two-thirds of construction firms reported having experienced labor shortages during the past year. Accordingly, 70% of survey respondents are paying more for skilled labor than they did last year, with 13% calling those increases “significant.” Labor shortages reported in the survey were more widespread in the South and Midwest than in the Northeast or West.

It follows, then, that the greatest Y-O-Y gains in construction employment on both a head-count and percentage basis were found mainly in the South and Midwest. Dallas-Plano-Irving, TX added the largest number of construction jobs in the past year with 9,400 jobs, or 8% of its total workforce in the sector; followed by Houston-Sugar Land-Baytown, TX (8,900 jobs, 5%) and Philadelphia  (8,500 jobs, 12%). The largest percentage gains occurred in Lake Charles, LA (27%, 2,900 jobs); Crestview-Fort Walton Beach-Destin, FL (26%, 1,000 jobs) and Monroe, MI (23%, 500 jobs).

The largest job losses from July 2013 to July 2014 were in Phoenix-Mesa-Glendale, AZ (-4,800 jobs, -5%), followed by Bethesda-Rockville-Frederick, Md. (-3,500 jobs, -10%) and Newark-Union, N.J. (-2,500 jobs, -7%). The largest percentage decline for the past year was in Steubenville-Weirton, OH-WV (-22%, -400 jobs), followed by Vineland-Millville-Bridgeton, NJ (-16%, -400 jobs), Cheyenne, WY (-12%, -500 jobs) and Fond du Lac, WI (-12%, -300 jobs).

As the development behind the employment gains picks up steam, it's reasonable to ask whether we're seeing overbuilding, whether by sector of by market. GlobeSt.com will examine that question in the next few days.