Construction firms added jobs in 39 states over the past 12 months, while employment nearly stabilized in the remainder, according to an analysis released today by the Associated General Contractors of America 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.
“The widespread job gains seen in most states for the past few months continued in November, while no state recorded a year-over-year loss of more than 4 percent,” said Ken Simonson, the association’s chief economist. “But progress remains fragile, with some states having results in the latest month that diverge sharply from their year-over-year outcomes.” He added that every state remains below its previous construction employment peak.
Association officials noted that the job gains occurred following an unusual spike in public construction spending experienced in October that masked softening private sector demand. They cautioned that as public spending declines, construction employment is likely to weaken in many parts of the country. As a result, they urged Congress and the Obama administration to finalize water resources legislation and to act swiftly next year to renew long-term highway and transit legislation.
“At this point, it is hard to predict whether construction employment will continue to expand in many states next year,” said Stephen E. Sandherr, the association’s chief executive officer. “Passing vital infrastructure measures will help protect construction employers from any softening in private sector demand, while giving the economy a needed boost.”