by Brianna Crandall — January 15, 2014—The Associated General Contractors (AGC) of America has released three reports in recent weeks based on its analysis of federal construction-related data for the year ending November 2013. Increases were observed in total construction spending, and in construction employment both in 211 out of 339 metro areas and in 39 states.
Total construction spending
Total construction spending increased for the year ending November 2013 amid growing private-sector demand, according to an AGC analysis of new Census Bureau data. Association officials noted, however, that the spending levels were held back by declining public sector investments for both the month and the year. Growth was seen in most nonresidential construction spending categories for the year, and the outlook reportedly appears favorable for many types of private nonresidential and multifamily construction, but remains flat or negative for public spending
Construction put in place totaled $934 billion in November, up 5.9% since November 2012. Private residential construction spending jumped 17% from a year earlier, private nonresidential spending climbed 1.0%, and public construction spending dropped 0.2%.
Over the past 12 months, the biggest jump in construction spending occurred in new multifamily construction, which rose 36% year-over-year. The lodging sector recorded the second highest annual gain (32.7%). Spending on communications facilities experienced the largest monthly increase, jumping 11.2% in November, although it is still down 10.5% for the year.
Construction employment by metro area
Construction employment expanded in 211 out of 339 metro areas, declined in 67, and was stagnant in 61 between November 2012 and November 2013, according to new AGC analysis of federal employment data. Association officials said the employment gains were encouraging, but that most areas have a long way to go before reaching prior peak levels, and cautioned that future gains were dependent on continued economic growth and new investments in aging domestic infrastructure.
Atlanta-Sandy Springs-Marietta, GA, added the largest number of construction jobs in the past year (10,500 jobs, 12%), followed by Los Angeles-Long Beach-Glendale, CA (9,100 jobs, 8%); Santa Ana-Anaheim-Irvine, CA (8,200 jobs, 11%); and Tampa-St. Petersburg-Clearwater, FL (6,400 jobs, 12%). The largest percentage gains occurred in Steubenville-Weirton, OH-WV (29%, 500 jobs); Eau Claire, WI (27%, 800 jobs); Fargo, ND (24%, 1,900 jobs); and Pascagoula, MS (24%, 1,100 jobs).
The largest job losses from November 2012 to November 2013 were in Cincinnati-Middletown, Ohio-KY (-4,000 jobs, -10%); followed by Raleigh-Cary, NC (-3,100 jobs, -10%); Baton Rouge, LA (-2,800 jobs, -6%); and Gary, IN (-2,300 jobs, -11%). The largest percentage declines for the past year were in Modesto, CA (-24%, -1,500 jobs); Lake Havasu City-Kingman, AZ (-14%, -300 jobs); Anniston-Oxford, AL (-11%, -100 jobs); Gary, IN (-11%, -2,300 jobs); and Mobile, AL (-11%, -1,300 jobs).
View construction employment figures by state and rank.
Construction employment by state
Construction firms added jobs in 39 states over the past 12 months, while employment nearly stabilized in the remainder, according to recent AGC analysis of Labor Department data. Association officials cautioned that the industry’s recovery was still relatively fragile, noting that a number of states experiencing large annual gains lost jobs during the past month, and that while no state recorded a year-over-year loss of more than 4%, every state still remains below its previous construction employment peak.
Mississippi led all states with a 17% rise (8,000 jobs) in construction employment between November 2012 and November 2013. Yet the state ranked 49th out of 50 states plus DC between October and November, with a loss of 2.3% or 1,300 construction jobs. Conversely, Indiana topped the monthly rankings, adding 4.8% (5,400 construction jobs), but lost 3.4% (-4,100 jobs) over 12 months. Only Montana (-4.0%, -900 jobs) and DC (-3.7%, -500 jobs) had steeper 12-month declines, according to the AGC.
States with strong 12-month percentage gains besides Mississippi included Connecticut (11%, 5,600 jobs), Missouri (9.8%, 10,100 jobs), and Georgia (9.5%, 13,200 jobs). California added the most jobs over the year (31,500, 5.2%), followed by Florida (24,300, 7.0%), Texas (13,300, 2.2%), Georgia and Missouri.
A total of 10 states plus DC shed construction jobs between November 2012 and November 2013, while employment was constant in Delaware. The largest number of losses occurred in Ohio (-5,200, -2.9%), followed by Indiana, Alabama (-2,500, -3.2%), and North Carolina (-2,500, -1.5%).
View the state employment data by rank and by state.
Association officials urged Congress and the Obama Administration to work together in 2014 to pass vital legislation to repair aging transportation, water and other infrastructure in order to help the U.S. economy grow and construction employment to expand in 2014.
