by Brianna Crandall — December 27, 2010—Construction employment expanded in 20 states between October and November 2010, while the list of states with year-over-year construction job gains grew to 13 states plus the District of Columbia, the Associated General Contractors of America reported in an analysis of state employment data released December 17 by the U.S. Labor Department.
The new figures continue a year-long pattern of mixed results in construction employment as overall demand remains weak, association officials noted.
“It is encouraging that the number of states adding jobs year-over-year was higher in November than at any time since February 2008,” said Ken Simonson, the association’s chief economist. “However, the data also make clear that these gains are as spotty as they are tenuous.”
Association officials cautioned that construction employment figures were likely to fluctuate and possibly drop over the coming months as many stimulus-funded projects begin to wind down and private-sector demand remains weak. They added that newly passed legislation that prevented steep tax increases, including for many small construction firms, will help boost overall economic activity and could drive new demand for construction later in 2011.
The AGC site offers access to construction employment figures by state and by rank.
Adding to the challenge, huge jumps in prices for diesel fuel and copper—two key inputs to construction—pinched contractors in November as weak demand for construction forced them to hold down bid prices despite the cost increases, according to an analysis of November producer price index figures released December 14 by AGC. Prices for materials used in construction climbed 0.5 percent in November and 4.8 percent over the past 12 months, while price indexes for finished buildings remained flat over both time periods. AGC noted that steel prices have also jumped since the data was collected.
