by Brianna Crandall — February 15, 2012—The Associated General Contractors of America (AGC) has released its analyses of several sets of new federal data in recent weeks, which taken together seem to indicate an upturn in the construction industry employment rate.
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The construction industry added 21,000 jobs in January for a total of 52,000 jobs in the past two months, as a second consecutive month of unseasonably mild winter weather helped the industry raise employment to a two-year high, according to AGC’s analysis. Association officials cautioned that the gains remain fragile amid declining public sector investments in construction and infrastructure, and that the unemployment rate in construction is still double that of the overall economy, remaining at 1996 levels.
Total construction employment now stands at 5,572,000, or 0.4% higher than a month earlier, and 116,000 (21%) higher than in January 2011—which was an exceptionally cold and snowy month in many regions, AGC notes. Construction employment is still 28% below its peak level of 7,726,000 in April 2006, and is no higher than in August 1996.
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Construction employment increased in 148 out of 337 metropolitan areas between December 2010 and December 2011, decreased in 128, and stayed level in 61, according to another AGC analysis of federal employment data, available by state and rank. The construction employment increases were likely fueled by a 4.3% increase in total construction spending between December 2010 and December 2011, driven largely by growing private sector demand, association officials noted.
Lake County-Kenosha County, IL-WI, added both the most and the highest percentage of new construction jobs (33%, 3,900 jobs). The largest job losses were in Philadelphia, PA (-4,800 jobs, -7%), while the Logan, UT-ID area (-23%, -700 jobs) lost the highest percentage.
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Construction employment rose in 28 states and the District of Columbia between December 2010 and December 2011, the largest number of states with year-over-year employment gains since November 2007, according to an additional AGC analysis of U.S. Department of Labor data, available by rank and by state. In contrast, 24 states plus D.C. lost jobs between November and December 2011, while 23 states added construction jobs for the month.
North Dakota ranked first among the 28 states and the District of Columbia that recorded construction employment gains from December 2010 to December 2011. The state added 24% (5,100 jobs). California added the largest number of jobs (21,300, 3.9%). Among the 21 states that lost construction jobs over the past 12 months, New Mexico experienced the steepest decline (-13.7%, -6,000 jobs), while Georgia lost the largest number of jobs over the year (-6,400 jobs, 4.6%).
