Construction firms added 14,000 new jobs in
April, the second consecutive month of employment gains for the industry,
according to an analysis of new federal figures released today by the Associated
General Contractors of America.
After more than two years of dramatic job
losses, the construction industry is once again adding jobs, thanks primarily to
the increasing number of stimulus-funded projects now underway, the association
noted.
“As today’s report makes clear, the impacts
of the stimulus are now being felt across a much broader section of the
construction industry,” said Ken Simonson, the association’s chief economist.
“The good news is the stimulus is for now turning the tide on construction
employment; the bad news is the stimulus is temporary while the construction
downturn will be protracted.”
Simonson noted that the construction
industry has added 40,000 new jobs since February. Those increases follow more
than three years of employment declines that cost over 2 million construction
workers their jobs. Even after the two months of job growth, the industry’s
unemployment rate was 21.8 percent, more than twice the national average and the
highest April rate since the series began in
1976.
The economist said the job growth appears
driven by the stimulus, noting that construction firms are reporting a surge in
projects funded by the Recovery Act. He added that the nonresidential
construction sector, where most stimulus construction funds were targeted, added
24,600 jobs in April and 36,500 jobs in March. Heavy and civil engineering
construction, which includes highway and many public works projects that
benefitted from the stimulus, alone added 9,000 new jobs last month, the fourth
pickup in the past six months.
Simonson cautioned that stimulus funding for
construction was likely to end before private-sector and state and local
government demand for construction resumes, citing high vacancy rates and
declining tax receipts. He said enacting the long-delayed highway and aviation
bills, passing the Water Resources Development Act and the Building Star
legislation, establishing a Clean Water Trust Fund and National Infrastructure
Bank and keeping tax rates unchanged were the best way to avoid post-stimulus
job losses in the construction industry.
“Without long-term federal investment
programs in place, construction employment is likely to suffer significant new
declines once the stimulus runs its course,” Simonson noted. “The best way to
build on today’s momentum is by enacting the long-term investment programs that
are crucial to the nation’s continued economic
prosperity.”
Construction Industry Adds 14,000 Jobs in April
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