Date: May 21, 2010
Kansas and North Dakota Experience Highest Monthly and Annual Percentage Gains, While Maine and Vermont Top Monthly Job Losses for Construction Industry
Increases in stimulus–funded projects and growing demand for single family construction helped boost monthly construction employment in 29 states between March and April, according to a new analysis of federal employment figures released today by the Associated General Contractors of America. Despite the recent gains, 46 states and the District of Columbia lost construction jobs over the past twelve months.
“A gradual turnaround appears to be taking hold after years of construction employment declines,” said Ken Simonson, the association’s chief economist. “As more stimulus projects get underway and single–family housing starts pick up, we are likely to see the number of states with year–over–year increases grow.”
Seasonally adjusted construction employment rose from March to April in 29 states, decreased in 18 and held steady in three, plus the District of Columbia, Simonson noted. He said that 17 of the states with monthly increases also added construction jobs from February to March. “It is encouraging that a solid majority of states added construction jobs in April and that more states are reporting back–to–back monthly gains,” Simonson added.
Kansas experienced the highest monthly increase in construction employment (8.7 percent, 5,000 jobs), followed by North Dakota (6.5 percent, 1,300 jobs), Wyoming (6.0 percent, 1,300 jobs), Oklahoma (4.4 percent, 2,900 jobs) and Massachusetts (3.8 percent, 3,900 jobs). Maine (7.7 percent, 1,800 jobs) experienced the highest monthly decline, followed by Vermont (5.7 percent, 700 jobs), Rhode Island (4.3 percent, 700 jobs), Hawaii (3.9 percent, 1,200 jobs) and South Carolina (3.1 percent, 2,500 jobs).
Simonson noted that the number of states with year–over–year job gains rose to four, led by a jump of 8.1 percent, or 1,300 jobs, in North Dakota. Contractors also added jobs from April 2009 to April 2010 in Kansas, which added 3,800 jobs or 6.5 percent; Alaska, with a gain of 100 jobs or 0.6 percent; and Arkansas, with 200 jobs, or 0.4 percent.
The largest annual percentage job losses were in Nevada (28 percent, 24,300 jobs), Colorado (19 percent, 26,300 jobs), Vermont (17 percent, 2,300 jobs), Washington (16 percent, 26,800 jobs), Idaho (16 percent, 5,600 jobs) and Maine (16 percent, 4,000 jobs). The largest number of construction job losses were in California (92,300 jobs, 14 percent), Texas (54,400 jobs, 9 percent) and Florida (45,300 jobs, 11 percent).
Simonson cautioned that the slump is far from over, citing high vacancy rates, delays in passing highway and other infrastructure legislation, and declining state and local tax revenue. “Aside from temporary stimulus projects and a fragile housing market, demand for new construction remains depressed for the foreseeable future. As a result, construction employment won’t return to pre–downturn levels for many months.”
Click here to listen to Ken Simonson and construction contractors discuss the reasons behind the April construction employment gains. Click here for the state–by–state construction employment figures.