February 7, 2012

U.S. construction employment increases: Associated General Contractors of America

WASHINGTON, D.C.

Construction employment in the United States increased in 148 out of 337 metropolitan areas between December 2010 and December 2011, decreased in 128 and stayed level in 61, according to a new analysis of federal employment data released by the Associated General Contractors of America.

The construction employment increases were likely fueled by a 4.3 per cent increase in total construction spending between December 2010 and December 2011, driven largely by growing private sector demand, association officials noted.

“Many communities are benefitting from growing demand from the private sector for new construction activity,” said Ken Simonson, the association’s chief economist. “Unfortunately, too many other areas are still coping with construction employment losses as the overall market remains relatively weak.”

Lake County-Kenosha County, Ill.-Wis., added both the most and the highest percentage of new construction jobs (33 per cent, 3,900 jobs). The largest job losses were in Philadelphia, Pa. (-4,800 jobs, -7 per cent.)

Simonson noted that the total annualized construction spending rate increased from $782.9 billion in December 2010 to $816.4 billion in December 2011, a 4.3 per cent annual increase and a 1.5 per cent jump from November 2011. However, for the full year, construction spending fell 2 per cent from the 2010 total.

The increases were largely driven by growth in private sector demand, the economist said, noting that spending on private nonresidential construction activity increased by 2.4 per cent compared to 2010, while residential construction slipped 1.1 per cent and public construction declined 6.5 per cent.

Association officials said that recent developments in Washington that could lead to passage of long-delayed highway, bridge, transit and aviation investment legislation could give a needed boost to construction employment in many areas. They added that they would continue pushing Congress to act on the measures as part of the group’s “Make Transportation Job #1” campaign.

“Construction employment should increase once Congress finally acts on long-overdue infrastructure measures,” said the association’s chief executive officer, Stephen E. Sandherr.

“After all Washington should be taking measures to help this industry recover, instead of holding it back.”

DCN NEWS SERVICES

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