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Construction employment continued its spotty improvement in July as the vast majority of states posted year-over-year gains. Still, most states posted decreases in July compared with June, according to the Associated General Contractors of America. The analysis is based on data from the U.S. Labor Department. The association says the steady improvement in employment in many states was welcome news, but cautioned that the industry’s recovery was still fragile.
“Today’s report shows the fragile and fragmentary nature of the industry’s recovery,” says Ken Simonson, chief economist for the Arlington, Va.-based association. “Construction employment increased in 37 states during the past 12 months — the largest number with gains since early last year — but only two states have surpassed their pre-recession peaks, and barely a third of states added construction jobs between June and July.”
Both the widespread annual gains and monthly losses were consistent with national totals for July. Data released earlier this month showed construction employment rose 3 percent from July 2012 to July 2013, but slipped by 0.1 percent, seasonally adjusted, in the latest month.
The largest year-over-year percentage increase in construction jobs occurred in Wyoming (16.7 percent; 3,500 jobs), followed by Mississippi (12.3 percent; 5,800 jobs) and Hawaii (11.6 percent; 3,400 jobs). Texas added the most jobs over the past 12 months (33,100; 5.7 percent), followed by California (17,800; 3 percent) and Florida (15,700; 4.6 percent).
The District of Columbia and 13 states lost construction jobs from July 2012 to July 2013. The steepest declines occurred in Indiana (-6.7 percent; -8,300 jobs) and South Dakota (-6.7 percent; -1,400 jobs). The biggest losses were in Indiana and Ohio (-6,300; -3.5 percent).
Only 18 states added construction employees between June and July of this year on a seasonally adjusted basis, while 30 states and D.C. lost jobs. There was no change in Massachusetts or Texas.
Three states had one-month employment gains of more than 3 percent: Kentucky (3.9 percent; 2,500 jobs), Hawaii (3.5 percent; 1,100 jobs) and Wyoming (3.4 percent; 800 jobs). Florida added the largest number of jobs for the month (3,700; 1.1 percent), followed by Georgia (2,600; 1.8 percent), Pennsylvania (2,600; 1.8 percent), Kentucky and Colorado (2,400; 1.9 percent).
The steepest one-month percentage decline in construction employment occurred in Montana (-4.1 percent; -900 jobs), followed by Idaho (-3.1 percent; -1,000 jobs). The largest drop in employment for the month occurred in California (-7,300; -1.2 percent), followed by Indiana (-3,400; -2.8 percent) and Ohio (-3,100; -1.8 percent).
The association says that after years of layoffs and slow demand, many unemployed skilled construction workers had likely either retired or switched industries. If demand for new construction were to expand, many firms would likely face shortages of available skilled workers.
“While the industry’s recovery has been tentative and remains very fragile, any jump in demand would be as challenging for firms as it would be welcome,” says Stephen Sandherr, the association’s chief executive officer. “The biggest question for many firms is whether there will be enough skilled workers available if things heat up.”
— Staff reports