September 1, 2010

Construction employment dips in 276 of 337 U.S. metro areas

Construction employment declined in 276 out of 337 U.S. metropolitan areas between July 2009 and July 2010, according to a new analysis of federal employment data by the Associated General Contractors of America.

The employment figures demonstrate the widespread decline in demand for construction services that continues to outpace stimulus-funded work, AGC noted.

“There is no doubt that we have seen an increase in stimulus activity this summer,” said AGC chief economist Ken Simonson.

“Unfortunately, that increase in stimulus activity is largely being overshadowed by continuing declines in overall demand for construction that are likely to persist well into next year.”

The Chicago-Joliet-Naperville area lost more construction jobs (32,900 jobs, 23 per cent) than any other metro area, owing to a construction strike that has since ended.

Flagstaff, Ariz. lost the highest percentage (700 jobs, 32 per cent).

Other areas experiencing large declines in construction employment included: Las Vegas (14,800 jobs, 24 per cent); Houston (14,700 jobs, 8 per cent); Los Angeles-Long Beach-Glendale (10,700 jobs, 9 per cent); and Seattle-Bellevue-Everett (10,400 jobs, 14 per cent).

But 31 metro areas added construction jobs over the past 12 months, while another 30 areas experienced no change in construction employment.

Calvert-Charles-Prince George’s Counties in Maryland added more construction jobs (2,800, 8 per cent) than any other metro area.

Eau Claire, Wis. added the highest percentage (16 per cent, 500 jobs). Other areas adding jobs included Kansas City, Kans. (1,700 jobs, 9 per cent); Pittsburgh (1,500 jobs, 3 per cent); Columbus, Ohio (1,000 jobs, 3 per cent); and Chattanooga, Tenn. (700 jobs, 8 per cent).

The impacts of the stimulus can be seen in the fact that many of the construction employment declines metro areas are experiencing are less severe than even a month ago, AGC noted.

But Simonson noted that “too few cities were adding construction jobs to have any widespread impact on construction employment.”

“As much as we would hate to see how much worse the construction employment figures would be without the stimulus, the fact is our industry is continuing to suffer even as some areas of the economy have begun to expand,” added AGC CEO Stephen Sandherr.

“And with regular, long-term infrastructure bills stalled in Congress, it looks like construction workers will have little opportunity to continue rebuilding our economy.”

-RCD Digital Media

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