Good News for Masons: Construction Unemployment Drops to Lowest April Mark in Five Years

The unemployment rate for construction workers fell to the lowest April level in five years as contractors added more than 150,000 employees in the past year despite a dip in employment last month, according to an analysis of new government data by the Associated General Contractors of America. Association officials noted that, despite the monthly drop, the industry is likely to continue adding jobs for much of 2013.

“It is heartening to see that both nonresidential and residential segments of the construction industry added significant numbers of workers in the last 12 months, even though gains from March to April were limited to the residential side,” says Ken Simonson, the association's chief economist. “Other indicators, such as the continuing growth in architectural and engineering employment, suggest that demand for construction will expand further.”

Seasonally adjusted construction employment of 5.79 million in April was 6,000 less than in March, but 154,000, or 2.7 percent, higher than in April 2012, Simonson notes. Residential building and specialty trade contractors added 13,300 workers in the month and 83,700 (4.1 percent) over 12 months. Nonresidential building and specialty trade contractors, along with heavy and civil engineering construction firms, lost 19,700 employees in April, but added 70,100 (2 percent) over 12 months. Architectural and engineering services employment climbed by 2,700 in the month and 23,400 (1.8 percent) from a year earlier.

The unemployment rate for jobseekers who last worked in construction fell to 13.2 percent from 14.5 percent in April 2012, the lowest April level since 2008. Three years ago, in April 2010, the rate was 21.8 percent. The industry unemployment rate is not seasonally adjusted and, thus, can be compared to the same month in past years but not month to month.

“The ongoing decline in the construction unemployment rate is only partly a result of opportunities in the industry,” Simonson says. “Unfortunately, many former workers have now left the industry, perhaps permanently, which will make further recovery in construction more difficult.”

Association officials said that if construction employment grows as expected during the coming months, it will become increasingly difficult for employers in particularly fast growing market regions and segments to find qualified workers. They added that a lack of domestic skill-based educational programs and arbitrary caps on the number of construction workers in proposed immigration legislation would make it harder for firms to keep up with growing demand.

“It will not take a lot of growth in demand before many construction firms are scrambling to fill positions with skilled workers,” says Stephen E. Sandherr, the association’s CEO. “We need to provide significantly more opportunities for students to learn skills-based crafts like construction and avoid imposing artificial limits on the size of the construction workforce in immigration legislation.”

Good News for Masons: Construction Employment Hits Three-Year High

The construction industry added 48,000 jobs in February, the ninth-consecutive month of job growth for the sector, as more people are working in construction than at any point in the last 3.5 years, according to an analysis of new government data by the Associated General Contractors of America. Association officials cautioned, however, that employment gains remain tenuous and could be undermined if Washington officials fail to reach a deal on federal investment levels later this month.

“With construction employment increasing by the largest amount for a single month in nearly six years, the steady improvement in construction hiring is particularly encouraging,” said Ken Simonson, the association's chief economist. “The job gains are coming from every part of the construction industry and while the sector’s unemployment rate remains stubbornly high, it is heading in the right direction.”

Construction firms employed 5.78 million people in February, a gain of 48,000 from January and 140,000 or 2.5 percent from a year ago, Simonson noted. The industry unemployment rate, which is not seasonally adjusted and thus is typically high in February, fell from 17.1 percent in February 2012 to 15.7 percent last month.

Both residential and nonresidential construction added jobs for the month and year. Residential construction—building and specialty trade contractors—added 19,400 jobs in February and 64,200 (3.1 percent) over 12 months. Nonresidential construction—building, specialty trade, and heavy and civil engineering construction—expanded by 29,000 employees in February and 75,700 (2.1 percent) over the year-ago level.

“Both single- and multifamily homebuilding have been accelerating for several months and should continue to add jobs in the near future,” Simonson said, noting that he expects construction employment may increase by 250,000 in 2013. “On the private nonresidential side, there will likely be strong growth in power and energy-related projects, manufacturing and distribution facilities and private college construction. However, public construction remains weak.”

Association officials said that recent improvements in construction employment could be undermined if Congress and the Obama administration fail to reach an agreement to fund federal operations known as a continuing resolution by the time the current one expires on March 27. Should Washington officials fail to enact a new continuing resolutions, tens of billions of dollars worth of federal investments in infrastructure and construction projects could be shut down.

“While the new employment figures are encouraging, the construction industry’s recovery remains fragile,” said Stephen E. Sandherr, the association’s chief executive officer, noting that the construction firms employ nearly two million fewer people today than in 2006. “Putting billions of dollars worth of construction projects on hold because Washington officials can’t set a budget threatens to undermine the sector’s recovery just as it is starting to heat up.”

Construction Employment Increased in 33 States and D.C. From November to December

Construction employment expanded in two-thirds of all states in December and in half the nation last year as the industry showed signs of emerging from a six-year slump, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials noted that contractors responding to a recent survey expect to add more workers in 2013.

“These results show that contractors are finding work in more parts of the country than they have for many months,” says Ken Simonson, the association’s chief economist. “Further gains appear likely but could be derailed if lawmakers do not keep debt markets operating normally.”

For 2012 as a whole, 24 states and the District of Columbia added construction jobs, 24 shed workers and two—Vermont and West Virginia—had no change. Nebraska jumped to the top ranking for percentage of new construction jobs (10.1 percent, 4,100 jobs); followed by D.C. (7.3 percent, 900 jobs); Texas (6.6 percent, 36,800 jobs); Hawaii (6.5 percent, 1,800 jobs) and Washington (6.5 percent, 9,000 jobs). Texas added the most new construction jobs over the past 12 months, followed by California (24,500 jobs, 4.4 percent), Washington and Arizona.

Among states losing construction jobs during the past year, Rhode Island lost the highest percentage (-6.7percent, -1,100 jobs), followed by Delaware (-5.8 percent, -1,100 jobs); Mississippi (-5.6 percent, -2,700 jobs) and Arkansas (-5.6 percent, -2,600 jobs). Illinois lost the most jobs (-8,600 jobs, -4.5 percent); followed by Pennsylvania (-7,700 jobs, -3.4 percent) and Florida (-16,800 jobs, -2.1 percent).

Simonson noted that 33 states and D.C. added construction jobs between November and December, while employment slipped in 16 states and held steady in Utah. Wisconsin had the largest percentage increase (5.8 percent, 4,900 jobs); followed by D.C. (3.9 percent, 500 jobs) and New Jersey (3.6 percent, 4,300 jobs). Utah had no change in construction employment over the month, while 16 states lost jobs, with Rhode Island having the steepest percentage drop (-5.6 percent, -900 jobs); followed by Montana (-4.1 percent, 1,000 jobs) and Minnesota (-3.6 percent, 3,500 jobs). Texas lost the largest number of jobs for the month (-4,100 jobs, -0.7 percent); followed by Florida (-3.500 jobs, -1.1 percent) and Minnesota.

“Construction spending has been rising for two full years but contractors have been cautious about adding workers until they knew the upturn would last,” Simonson says. “In 2013, both residential and private nonresidential construction should rise enough to offset a further slowdown in public work, and contractors will be looking for more workers.”

Association officials said the monthly construction employment gains were consistent with results of its recently released 2013 Construction Hiring and Business Outlook, where 31 percent of firms reported plans to add new workers this year compared to only 9 percent that plan to make layoffs, a net positive reading of 22 percent. Officials cautioned that construction firms still face significant headwinds, noting that most firms expect public construction activity to continue to decline and remain cautious about plans to acquire new equipment.

“There is a growing sense of optimism within the construction community that the worst is over,” says Stephen E. Sandherr, the association's CEO. “At the same time, however, just because the worst is over doesn't guarantee that conditions are going to get significantly better anytime soon, especially if Washington can't find a way to address out-of-control entitlement spending that is making it increasingly difficult to invest in aging infrastructure and other important construction programs."

View the state employment data by rank and by state.

Construction Employment Declines Over Fiscal Cliff Anxiety

Barely one-third of states added construction jobs on either a monthly or annual basis in November, as the prospect of a more severe contraction in 2013 keeps hiring down, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials noted that the threat of the looming fiscal cliff’s spending cuts and tax increases is offsetting slight growth in construction spending and keeping employment levels down.
 

“While construction spending has been rising for over a year, contractors have held down employment levels out of fear that failure in Washington to avoid the ‘fiscal cliff’ will trigger a recession and cause many projects to be canceled,” says Ken Simonson, the association’s chief economist. “If the nation can get past this unnecessary, self-induced crisis, there should be a strong upswing in construction hiring in 2013.”

Simonson noted that only 20 states and the District of Columbia added construction jobs between November 2011 and November 2012, while employment shrank in 30 states. Hawaii jumped to the top ranking for percentage of new construction jobs (8.4 percent, 2,300 jobs), followed by Nebraska (7.3 percent, 3,000 jobs), Texas (6.7 percent, 37,400 jobs), Minnesota (6.5 percent, 5,900 jobs) and Arizona (6.2 percent, 7,000 jobs). Texas added the most new construction jobs over the past 12 months, followed by California (26,400 jobs, 4.8 percent), Arizona and Minnesota.

Among states losing construction jobs during the past year, Delaware again lost the highest percentage (-8.9 percent, -1,700 jobs), followed by Nevada (-8.2 percent, -4,400 jobs) and Arkansas (-7.3 percent, -3,400 jobs). New York lost the most jobs (-16,100 jobs, -5.2 percent), followed by Illinois (-11,200 jobs, -5.9 percent) and Pennsylvania (-10,700 jobs, -4.8 percent).

Among the 19 states that added construction jobs between October and November, Vermont had the largest percentage increase (4.4 percent, 600 jobs), followed by Louisiana (4.0 percent, 4,900 jobs) and Nevada (3.1 percent, 1,500 jobs). Michigan had no change in construction employment over the month, while 30 states and D.C. lost jobs, with D.C. having the steepest percentage drop (-7.4 percent, -1,000 jobs). Texas lost the largest number of jobs for the month (-8,300 jobs, -1.4 percent). Indiana had the second-steepest and second-largest declines (-4.8 percent, -6,200 jobs).

Association officials said the threat of the fiscal cliff was already having an impact on construction employment in most states. They noted that a survey of several hundred construction firms the association released earlier this month found that many firms have already delayed hiring or reduced staff because of the threat of federal spending cuts and tax increases included in the fiscal cliff.

“Thousands of construction workers will be spending the holidays wondering if their leaders in Washington can resolve the fiscal cliff before it costs even more jobs,” says Stephen E. Sandherr, the association's chief executive officer. “Cutting key investments and raising taxes on employers will undermine any chances for a construction industry recovery next year.”

View the state employment data by rank and by state.

AGC: Highway and Transit Bill Will Protect Jobs, Boost Economy

The CEO of the Associated GeneralContractors of America, Stephen E. Sandherr, issued the following statement in response to the recently-announced deal on a 27-month federal surfacetransportation bill by the Congressional conference committee:

“The members of the conference committee have demonstrated the kind of tenacity, perseverance and flexibility that is often required to craft significant pieces of legislation like this new highway and transit bill. This measure offers a much-needed lifeline for tens of thousands of construction workers trying to earn a good living and feed their families. As important, the measure provides the kind of serious and substantive reforms needed to make the federal program more cost-efficient and more effective at delivering needed transportation improvements.

“We have consistently called on key members of Congress to demonstrate the leadership needed to get a bill done. They clearly heard our calls and answered with an unequivocal yes. And as soon as this measure is enacted, construction workers, employers and commuters across the country will be able to enjoy the benefits of their efforts.

“Over the coming hours we will work with members of the House and Senate, as well as the administration, to ensure this vital measure passes and is signed into law. After all, it isn’t every day members of Congress can enact sweeping reforms, fund tens of thousands of vital jobs and give a much-needed boost to our economy with a single vote.

“Beyond this immediate measure, we expect, and encourage, members of Congress to work in a similar bipartisan and bicameral manner to address the long-term funding challenges that will continue to threaten highway and transit investments after this new measure expires.”

Year-Over-Year Construction Employment Increases in 146 Metros

Construction employment increased in 146 out of 337 metropolitan areas between August 2010 and August 2011, declined in 145 and stayed level in 46, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted that the local employment data remains relatively split as private sector demand increased and public sector activity declined more rapidly during the past year.

“The construction market is caught between increases in private sector demand and even larger decreases in public sector construction investments,” says Ken Simonson, the association’s chief economist, noting that private sector spending on construction has grown by 5.5 percent since July 2010, while public sector demand declined by 8.8 percent during the same time period. “Construction employment continues to be stuck in a pattern where there are just as many hot spots as there are slow spots.”

Houston-Sugar Land-Baytown, Texas, added more construction jobs (10,400 jobs, 6 percent) than any other metro area during the last year, while Lake County-Kenosha County, Ill.-Wis., added the highest percentage (22 percent, 2,900 jobs).

Other areas adding a large number of jobs included the Chicago-Joliet-Naperville area (7,100 jobs, 5 percent); Warren-Troy-Farmington Hills, Mich. (3,800 jobs, 10 percent); Edison-New Brunswick, N.J. (3,500 jobs, 9 percent) and the Detroit -Dearborn-Livonia area (3,400 jobs, 18 percent).

The largest job losses were in the Los Angeles-Long Beach-Glendale area (-7,000 jobs, -7 percent); followed by Atlanta-Sandy Springs-Marietta, Ga. (-5,500 jobs, -6 percent); Las Vegas-Paradise, Nev. (-4,400, -10 percent); Philadelphia (-3,800 jobs, -6 percent); and New York City (-3,400 jobs, -3 percent). Redding, Calif. (-19 percent, -600 jobs) lost the highest percentage.

Other areas experiencing large percentage declines in construction employment included Wilmington, N.C. (-17 percent, -1,600 jobs); Montgomery, Ala. (-16 percent, -1,100 jobs) and Panama City-Lynn Haven-Panama City Beach, Fla. (-16 percent, -800 jobs).

Association officials say the two most important steps Washington officials could take to boost construction employment are passing long-term infrastructure bills and reconsidering many of the costly regulatory obstacles that have been put in place. They note that, even as highway and transit legislation has languished, state and local officials are being forced to spend billions of limited transportation funds on butterfly bridges and bat-safe highway lighting.

"It’s like we are trying to rebuild our economy with two hands tied behind our back,” says the association’s CEO, Stephen E. Sandherr. “We’re penny pinching on infrastructure even as we allow entitlement spending to spiral out of control, while we are doing a lot of things to inflate the cost and delay the completion of infrastructure projects.”