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."
