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Construction Unemployment Rises to 17.1
Percent as Another 64,000 Construction Workers
Laid Off in September
October 2, 2009
CONSTRUCTION UNEMPLOYMENT RISES TO 17.1 PERCENT
AS ANOTHER 64,000 CONSTRUCTION WORKERS LAID OFF
IN SEPTEMBER
One
out of Every Five Construction Workers Lost Job
since December 2007, Nonresidential Construction
Accounted for 80 Percent of Construction Jobs
Lost Last Month
The
national unemployment rate for the construction
industry rose to 17.1 percent as another 64,000
construction workers lost their jobs in
September, according to an analysis of new
employment data released today. With 80 percent
of layoffs occurring in nonresidential
construction, Ken Simonson, chief economist for
the Associated General Contractors of America,
said the decline in nonresidential construction
has eclipsed housing’s problems.
“The
housing industry may be stabilizing, but the
broader construction crisis is only getting
worse,” Simonson said. “While the stimulus is
helping slow the decline, it’s clearly far from
enough to reverse sweeping industry-wide layoffs
on its own.”
Simonson said the new September employment data
assembled by the Bureau of Labor Statistics
showed 50,800 layoffs in the nonresidential
construction sector this September, while there
were 13,300 fewer workers in the residential
construction sector during the same period. He
added that over the last year, 649,800
nonresidential construction workers were laid
off while 443,000 residential workers lost their
jobs.
He
added that since December 2007, residential and
nonresidential construction employment shrank by
1.5 million. In other words, one out of every
five people working in construction in 2007 has
lost their job, Simonson added.
“When you’ve got skilled carpenters using their
hard hats to panhandle on the streets of Reno,
something’s not working,” said Stephen E.
Sandherr, the association’s chief executive
officer, who met with contractors and
construction workers in the Nevada city earlier
this week to release a new industry recovery
plan. “It’s time to put in place commonsense,
pro-growth policies that will get workers back
to hammering nails instead of collecting
quarters.”
Sandherr said the association is calling for a
series of tax credits, incentives and deductions
designed to boost demand for private-sector
construction activity that represents the bulk
of the construction market. The plan also calls
for programmatic new investments in
infrastructure and policy revisions designed to
jump start needed work on highways and transit
systems, water systems, federal building and new
sources of renewable energy.
Click here to learn more about the recovery
plan, “Build Now for the Future, A Blueprint for
Economic Recovery.”
Construction Workers Account
for Almost One-Third of All Jobs Lost This
August As Industry Remains the Hardest Hit
September 4, 2009
Nonresidential Construction Continues to
Account for Larger Share of Job Losses than
Residential Construction According to New
Analysis by Top Construction Economist
Construction
workers nationwide continued to bear the
brunt of the recession, accounting for
almost one-third of jobs lost this August,
according to an analysis of new construction
employment figures released today by the
U.S. Bureau of Labor Statistics. The new
figures underscore how the current economic
climate is having a disproportionate impact
on the construction industry, the Associated
General Contractors of America’s economist
noted.
“While most
Americans are experiencing a recession,
construction workers are being forced to
cope with depression-like conditions,” said
Ken Simonson, chief economist for the
association. “There’s nothing good in
today’s report for the nation’s construction
workers.”
Simonson noted
that construction employment nationwide
declined by 65,000 this August. He added
that construction workers accounted for 30
percent of the total nonfarm job losses
reported for the month, while the industry
only accounts for 5 percent of the
workforce.
The new federal
figures also show that since the beginning
of the recessions, 1.4 million construction
workers have lost their jobs. As a result,
Simonson noted, the unemployment rate among
construction workers is now 16.5 percent,
not seasonally adjusted, while the overall
unemployment rate is 9.6 percent, not
seasonally adjusted (9.7 percent seasonally
adjusted.)
The August
numbers also show that nonresidential
construction continues to account for a
greater share of the industry’s job losses
as compared to residential construction.
Nearly 43,000 nonresidential construction
workers lost their jobs, while 22,600
residential construction workers were laid
off in August. The federal government noted,
for example, that nonresidential
construction has accounted for more job
losses in 2009 than residential
construction, whereas in 2008, residential
construction saw the largest decline in
employment.
“It is time for
federal agencies to convert stimulus project
announcements into actual contracts and
construction activity,” said Stephen E.
Sandherr, the association’s chief executive
officer, noting that few federal agencies
besides the U.S. Department of
Transportation have converted stimulus funds
into new construction activity. “Congress
also needs to look for ways to encourage the
kind of sustained private economic growth
that will generate significant new
construction activity.”
Click here to see the new August
construction figures.
Nonresidential Construction Slides in July as
Stimulus Dollars "Trickle" Out to Contractors,
Top Industry Economist Notes
September 1, 2009
Private
Nonresidential Spending Falls for Fifth
Straight Month While Homebuilding Surges
Downturns in
multi-family construction and both private
and public nonresidential construction
swamped a strong upswing in single-family
homebuilding in July according to an
analysis of federal construction spending
data provided today by a leading
construction economist. That analysis of
U.S. Census Bureau data released today shows
that total construction spending fell 0.2
percent, seasonally adjusted, from a
downwardly revised June total.
“We know from
contractors’ reports that stimulus money is
beginning to flow, but what should be a
torrent by now is only a trickle in most
categories,” said Ken Simonson, chief
economist for the Associated General
Contractors of America.
He noted, for
example, that public nonresidential spending
slipped 0.8 percent from June to July as
cutbacks in state and local government
budgets offset federal stimulus dollars. The
only significant exception was in water
supply projects, where spending increased
3.7 percent, following a 6.8 percent jump in
June.
Private
nonresidential spending fell for the fifth
month in a row, slumping 1.2 percent in
July, after tumbling 2.2 percent the month
before, Simonson added. Losses were most
acute for developer-financed categories with
lodging down 8.4 percent for the month and
35 percent compared to July 2008; office
down 1.7 percent and 26 percent; and
commercial (retail, wholesale and farm),
down 1.7 percent and 35 percent,
respectively. The only private categories
that exceeded the July 2008 level were
manufacturing construction, which rose 0.9
percent for the month and 47 percent over 12
months; and power construction, down 0.8
percent in July but up 10 percent from a
year earlier.
“Given that
private construction will continue shrinking
for several more months, public agencies
charged with spending stimulus funds on
construction must do so as promptly as
possible,” Simonson said.
One bright spot
in the Census report was new single-family
construction spending, which surged 7.0
percent in July, following a 3.1 percent
gain in June. Nevertheless, this category
remained 45 below the year-ago level.
Meanwhile, new multi-family construction
plunged 3.3 percent for the month and 37
percent year-over-year.
“Contractors
depending on bank-financed developments for
work should expect further pain this year,”
Simonson concluded. “As a recent Federal
Reserve survey showed, banks are keeping a
tight lid on real-estate lending.”
Click here to view the new U.S. Census
Bureau data.
Construction Employment Shrinks in 319 of the
Nation's 336 Largest Metro Areas in July,
Continuing Months-Long Slide
August 31, 2009
Reno-Sparks, NV
& Wenatchee, WA Have Worst Job Losses,
Columbus, IN and Weirton-Steubenville, WV-OH
Again Have Largest Increases in Construction
Employment
Construction
workers in communities across the country
continued to suffer extreme job losses this
July according to a new analysis of
metropolitan area employment data from the
Bureau of Labor Statistics released today by
the Associated General Contractors of
America. That analysis found construction
employment declined in 319 of the nation’s
largest communities while only 11 areas saw
increases and six saw no change in
construction employment between July 2008
and July 2009.
“These figures
make it clear that construction workers in
nearly every community nationwide are out of
work and short on prospects," said Ken
Simonson, the association's chief economist.
"It’s going to take a lot of new
construction activity to turn things around
for idle construction workers in cities and
towns nationwide."
Simonson noted
that each of the six hardest hit
metropolitan areas in July lost at least 30
percent of their construction jobs. The
worst hit, Reno-Sparks, NV, had a 33 percent
decrease in construction employment. The
Wenatchee, WA area (32 percent), Duluth,
MN-WI (32 percent), Tucson, AZ (32 percent),
Leominster-Fitchburg, MA area (30 percent)
and Redding, CA (30 percent) were all close
behind.
In comparison,
only two communities saw double-digit job
gains, Simonson said. Columbus, IN again led
the nation in construction job growth with a
14 percent increase. Weirton-Steubenville,
WV-OH saw a 13 percent boost to its
employment figures. The other four
communities in the top six were Anderson, IN
and Baton Rouge, LA with a 6 percent
increase, Longview, WA with a 3 percent
increase and Evansville, IN-KY with a 2
percent increase.
"It is difficult
to understand why more communities aren’t
moving to put their stimulus funds to work
while they are experiencing these kinds of
job losses," said Stephen E. Sandherr, the
association’s chief executive officer.
“Coping with the red tape required by the
stimulus ought to be worth it to help put
neighbors and friends back to work."
Sandherr said
that new employment figures underscore the
need for cities and towns to move more
quickly to allocate their portion of the
estimated $135 billion in stimulus-funded
construction programs. He noted that while
contractors report state agencies are moving
quickly to distribute
stimulus-transportation dollars, many
municipalities are moving slowly to
distribute their stimulus construction
funds.
Click
here to view the data by state, and
here to view the data ranked by
percent change.
Construction Employment
Continues to Slide as New Figures Show Shrinking
Work Force in 47 States This July
August 21, 2009
Arizona and
Nevada Lead Nation in Construction Job
Losses While Only Louisiana and North Dakota
Saw Increases in Construction Employment
Few states were
immune from construction employment declines
this July based on an analysis of federal
employment data released today by the
Associated General Contractors of America.
That analysis found that 47 states saw
declines in construction employment, while
only two states saw increases and one saw no
change in construction employment between
July 2008 and July 2009.
“There aren’t a
lot of places construction workers can turn
to avoid the steep layoffs sweeping the
construction industry right now,” said
Stephen E. Sandherr, the association’s chief
executive officer. “Sadly, construction
workers are feeling the full impact of
declining state spending, a near halt in
office and retail construction and stimulus
spending that – with too many programs – has
yet to materialize.”
Sandherr noted
that each of the five hardest hit states in
July saw construction employment declines
greater than 20 percent over the previous
year. The worst hit, Arizona, has a 28
percent decrease in construction employment,
while Nevada (25.1 percent), Connecticut
(21.9 percent), Kentucky (20.8 percent) and
Tennessee (20.2) were all close behind.
Taken together, those five states employ
141,600 fewer construction workers than they
did a year ago.
Even in the
states with the most positive figures, the
numbers were less than encouraging, Sandherr
added. While Louisiana and North Dakota both
saw increases in construction employment,
3.6 percent and 2.8 percent respectively,
they accounted for a net increase of only
5,500 construction jobs over the previous
year. Combined with the rest of the “best”
performing states – Mississippi (no change),
Nebraska (a 3.8 percent decline) and South
Dakota (a 3.9 percent decline) – the top
five states accounted for a net increase of
just 2,700 construction jobs.
Sandherr said
that new employment figures underscore the
need for federal and state officials to move
faster in allocating the estimated $135
billion in stimulus-funded construction
programs. A recent survey of construction
firms found that few firms outside of the
transportation arena have yet to benefit
from the range of construction projects
promised by the stimulus, he noted.
“Finding a way
to accelerate the construction portion of
the stimulus will go a long way in bringing
desperate construction workers a much-needed
opportunity to put their skills to use
again,” Sandherr said. “As the numbers
unfortunately indicate, there’s plenty of
construction capacity standing by to help
rebuild the American economy.”
Click
here to view the association’s
state-by-state construction employment
analysis.
Construction Employment
Continues to Fall, AGCA Calls for Quick
Disbursement of Stimulus Funds to Save Jobs
August 7, 2009
“Construction
employment fell by 76,000 jobs last month,
seasonally adjusted,” said Stephen Sandherr,
chief executive officer of the Associated
General Contractors of America, in reference
to today’s employment numbers released by
the Bureau of Labor Statistics. “Meanwhile,
the last 12 months have seen 1,053,000
construction workers lose their jobs,
emphasizing the negative impact the current
economy is having on the construction
industry in particular. Currently, 18.2
percent of construction workers are
unemployed, nearly double the 9.7 percent
overall unemployment rate, or 9.4 percent
seasonally adjusted. While it is clear that
the stimulus has helped prevent even greater
job losses, it is apparent that the
construction industry is suffering from low
demand for commercial facilities, dwindling
orders for new office buildings, declining
state and local revenue, and the current
economic conditions as a whole, including
tight credit markets.”
“These job
figures clearly point towards the continued
need for investment in the construction
industry. With stimulus funds slowly being
spent, it is critical that both Congress and
the Administration focus on hastening the
disbursement of these funds, particularly
for non-transportation stimulus construction
projects. It is crucial that the stimulus
money quickly finds its way into the
industry, or thousands more construction
workers will lose their jobs.”
Stimulus Construction Funds
Have Little Impact to Date on Companies' Ability
to Hire New Employees, Analysis Finds
July 30, 2009
Companies With
and Without Stimulus Projects Hiring at Same
Rate, In Part Because of “Disappointingly”
Slow Distribution on Non-Transportation
Stimulus Construction Dollars
The stimulus
plan appears to be having little influence
on construction companies’ ability to expand
payrolls to date according to a new industry
analysis of the impact of the federal
program’s construction spending released
today by the Associated General Contractors
of America. The “disappointingly” slow pace
of construction spending outside of the
transportation sector is one of the main
reasons for the relatively small impact on
new hiring, the group noted.
“While the
construction portion of the stimulus is
having an impact, it is far from delivering
its full promise and potential,” said
Stephen E. Sandherr, the chief executive
officer of the contractors association.
“With construction unemployment at almost
double the national rate, it is
disappointing to see so many stimulus
programs getting off to such a slow start.”
Sandherr said
that five months into a federal stimulus
program that has approximately $135 billion
dedicated for construction projects, there
is little difference in hiring and
purchasing patterns between companies doing
stimulus-funded work and companies that
aren’t.
For example, he
noted that while 36 percent of construction
companies with stimulus-funded work report
plan to hire new employees, an almost
identical percentage of firms without
stimulus-funded work also plan to make new
hires this year or next. He added that while
36 percent of construction firms with
stimulus-funded work plan to purchase new
equipment and supplies, a higher rate - 43
percent - of construction firms without
stimulus-funded work report plans to
purchase new equipment over the same time
frame.
One reason the
stimulus is having a limited impact on
construction hiring and purchasing patterns,
Sandherr said, is that outside of the
transportation arena, little of the
stimulus’ authorized construction dollars
have resulted in actual construction work.
He noted that while the Army Corps of
Engineers is responsible for $4.6 billion in
stimulus construction funds, the agency has
only obligated $715 million and paid out $84
million.
Meanwhile, the
General Services Administration has only
obligated $656 million and paid out $12
million of its $5.9 billion in stimulus
construction funds. And only half of one
percent of the $6 billion in stimulus funds
available for the U.S. Environmental
Protection Agency’s state clean water and
drinking water programs has been put to use
at this point.
He said the slow
investment rate for construction funds was
significant to hiring and purchasing
patterns because some of the hardest hit
segments of the construction industry are
outside of the transportation area.
Sandherr said
the stimulus was doing a much better job at
this point in helping construction companies
save existing jobs. He noted that 60 percent
of construction firms with stimulus-funded
work report have saved or retained jobs
because of the stimulus.
And he noted
that construction firms with stimulus-funded
work do plan to make larger equipment
purchases than their colleagues without
stimulus funded work. Among companies
planning equipment purchases, forty-two
percent of firms with stimulus work say they
will spend over $500,000, while only 18
percent of firms without stimulus work will
invest more than half a million dollars in
new equipment and supplies.
“The stimulus is
clearly working,” Sandherr said. “It just
isn’t working fast enough for many
construction workers in many communities.”
Sandherr said
there was still time for the Administration
to make sure the multi-year stimulus program
delivers on its promise. He said the
association was urging federal agencies to
address critical shortages of contracting
officials within key federal and state
agencies overseeing stimulus construction
dollars.
He added that
the Administration needs to fully and
finally clarify reporting and Buy American
requirements included in the stimulus,
noting many federal and state agencies are
having difficulty interpreting the new
mandates. And he urged everyone involved
with the stimulus to set proper expectations
for what the stimulus will, and will not, be
able to do for the economy.
“Unsustainably
high expectations can bring down good policy
and great programs,” Sandherr said. “The
stimulus will keep our industry alive, but
it will not turn around a trillion dollar
construction industry overnight.”
The stimulus
analysis released today was based in part of
a survey almost 1,000 construction firms
nationwide conducted by the Associated
General Contractors of America over the past
three weeks. The survey results were
combined with the association’s analysis of
federal and state agency stimulus
activities, and a review of employment data
from the Bureau of Labor Statistics.
Click
here for the survey results and
here for the association’s stimulus
impact analysis.
