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Construction job losses point to multi-year slump: Associated General Contractors of America

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Construction employment declined in 27 U.S. states between June 2010 and 2011, according to an analysis by the Associated General Contractors of America of state employment data released by the Labor Department. AGCA officials urged the U.S. Congress to enact new, or extend existing, federal aviation legislation to ensure US$2.5 billion worth of airport construction projects are not stopped.

WASHINGTON, D.C.

Construction employment declined in 27 U.S. states between June 2010 and 2011 and dropped in 23 states and the District of Columbia between May and June, according to an analysis by the Associated General Contractors of America of state employment data released by the Labor Department.

“There is no getting around the fact this industry is stuck in a multi-year slump,” said Ken Simonson, the association’s chief economist.

“The private sector isn’t growing fast enough to boost demand for new structures while public construction budget cuts appear to be accelerating.”

Of the 27 states with decreases over the year, the largest percentage drop took place in New Mexico (-10.2 per cent, -4,400 jobs); followed by Nevada (-8.6 per cent, -5,100 jobs).

Simonson noted 22 states and the District of Columbia added jobs during the past 12 months. Texas (26,000 jobs, 4.6 per cent) added the most jobs, followed by Michigan (10,900 jobs, 9.2 per cent).

Association officials urged Congress and the Obama administration to reconsider recent cuts to a range of federal facility construction programs. They also called on Congress to enact new, or extend existing, federal aviation legislation to ensure US$2.5 billion worth of airport construction projects aren’t brought to a halt.

DCN News Services

by Daily Commercial News

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