AGC: Construction Jobs Increase But Still Below Peak

ARLINGTON, VA-Construction employment has expanded year-over-year in the majority of metro areas and states, the Associated General Contractors of America said late last month. However, the trade association noted that the gains in construction activity, and therefore employment, still haven't taken hold in all regions of the US.

“October was a good month for construction employment in many parts of the country,” Ken Simonson, AGC's chief economist, said last week. He added, though, that “It will take many more months of strong jobs gains before construction employment returns to peak levels in many parts of the country.”

As it stands, construction employment rose in 215 metro areas between October 2012 and October 2013, declined in 74 and remained stagnant in 50 others, with only 21 topping previous highs for the month, according to AGC analysis of federal data. Orange County in California added the largest number of jobs over the past year with 9,700 hires, followed by the Atlanta metro area with 8,500, Boston with 7,500 and Minneapolis-St. Paul with 6,800.

The largest percentage gain was in Pascagoula-Moss Point, MS, where construction employment rose 35% Y-O-Y. The biggest loser among metro areas from its October peak: Lake Havasu, AZ, down 75% from the high watermark it reached in October 2005.

At the state level, 39 states saw Y-O-Y gains, led on a percentage basis by Mississippi with a 19% increase. Connecticut was next, up 11%, followed by Louisiana (8.3%) and Florida (7.7%). Florida was first in the number of construction jobs added with 26,600 hired since last October, closely followed by California (26,000) and Texas (14,500).

Notwithstanding the gains, construction employment is still below peak levels in more than 300 metro areas and in the majority of states, according to AGC. The association wants to see Congress move on legislation to help repair the nation's again water and transportation infrastructure.

In particular, the group is urging a Congressional conference committee to reconcile the differences between House and Senate versions of the Water Resources Development Act, so that a final bill can be passed. “Congress has an opportunity to enact measures that will help put people back to work and make our economy more competitive for years to come,” says Stephen E. Sandherr, AGC's CEO. “Making our ports more efficient, our bridges safer and our roads less congested will allow American businesses to be more competitive, our products more affordable and our economy more robust.”