July 29, 2010

U.S. construction employment stabilizes

ARLINGTON, Va.

Construction employment edged closer to stabilizing in June, as half the states either added construction jobs or kept the same number as in May, the Associated General Contractors reports.

Compared to June 2009, construction employment rose in six states, the largest number of states to post year-over-year increases since October 2008.

“It is encouraging to see some states adding construction jobs and the declines in others getting less severe,” said Ken Simonson, chief economist for the construction trade association. “But there’s little room to celebrate with overall construction employment at a 14-year low and demand for most constructions services still weak.”

Simonson noted that the largest year-over-year increase was in Kansas, where construction employment rose 7.7 per cent (4,400 jobs), followed by Alaska (3.1 per cent, 500 jobs); Arkansas (2.4 per cent, 1,200 jobs); West Virginia (2.4 per cent, 800 jobs); and New Hampshire (2.3 per cent, 500 jobs).

The largest percentage job decrease compared to June 2009, was in Nevada, 24.4 per cent (-19,500 jobs), followed by Vermont (18.5 per cent, 2,500 jobs); Wyoming (16.6 per cent, 4,000 jobs); and Washington (14.3 per cent, 22,900 jobs). California lost the largest number of jobs (74,400 or 12 per cent).

Simonson noted that the number of workers and firms eager to work, combined with relatively low materials costs makes construction more affordable than it has been in years. The producer price index for construction dropped 0.9 per cent in June.

Association officials noted that projects funded by federal stimulus money have added to the construction job tally in many states. They warned, however, that money will soon run out yet Congress has yet to pass most of its regular long-term infrastructure bills.

“Any improvements in the construction employment picture will be difficult to sustain unless Congress quickly passes long-term funding for transportation, drinking water and wastewater infrastructure,” said Stephen E. Sandherr, the association’s chief executive officer.

Kentucky experienced the highest one-month percent increase in construction employment (2.4 per cent, 1,600 jobs), followed by New Mexico (2.1 per cent, 900 jobs); Massachusetts (1.9 per cent, 2,000 jobs); Utah (1.5 per cent, 1,000 jobs); and Nebraska (1.5 per cent, 700 jobs). Wyoming lost the highest percentage of construction jobs during the past month (6.9 per cent, 1,500 jobs); followed by Vermont (5.2 per cent, 600 jobs); Nevada (4.7 per cent, 3,000 jobs); Idaho (3.7 per cent, 1,100 jobs); and Iowa (3 per cent, 1,900 jobs).

DCN NEWS SERVICES

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