US construction employment expanded in 215 metro areas, declined in 80 and was stagnant in 44 between June 2013 and June 2014, according to a new analysis of federal employment data released Wednesday by the Associated General Contractors of America. Association officials noted that uncertainty about a range of federal infrastructure and construction programs could weigh on future growth for the sector.
"Contractors have been expanding their work force in about two-thirds of the country for several months in a row," said Ken Simonson, the association's chief economist. "Some metro areas are adding workers at a strong clip, but the gains remain modest and sporadic in many localities."
Association officials noted that signs of uncertainty about a range of federal infrastructure and construction programs could undermine future construction employment growth. They urged Congress to quickly pass a "continuing resolution" that would set federal spending levels for next year and to enact long-term surface transportation legislation. Having these measures in place would make it easier for many construction firms to make hiring, purchasing and expansion plans, they added.
"Even as the overall economy continues to recover, many firms that work on federally-funded projects are having a hard time making hiring, equipment purchasing and expansion plans," said Stephen E. Sandherr, the association's chief executive officer. "It is hard to make sound business decisions when you don't know how much work will be available in the near future."