Some metro areas bounces back slightly from construction unemployment

June 18, 2010

Despite the general trend of decreasing construction employment in metro areas, new federal employment data analyzed by the Associated General Contractors of America showed construction employment increases in more metro areas between April 2009 and April 2010 than at any other point during the past year.

Despite the general trend of decreasing construction employment in metro areas, new federal employment data analyzed by the Associated General Contractors of America showed construction employment increases in more metro areas between April 2009 and April 2010 than at any other point during the past year.

Five metro areas recorded double-digit percentage gains in construction employment, including Eau Claire, Wis. (24%, 600 jobs); Haverhill-North Andover-Amesbury along the New Hampshire-Massachusetts border (14%, 500 jobs); Bismarck, N.D. (13%, 400 jobs); Bay City, Mich. (11%, 100 jobs); and Hanford-Corcoran, Calif. (11%, 100 jobs). Kansas City, Kan., added the most jobs (1,400 jobs, 8%).

Association officials noted that even though construction job losses were less widespread than in previous months, the industry is still shedding workers in most metropolitan areas.

Ken Simonson, the association’s chief economist, recognized that construction employment is stabilizing in some metro areas but also pointed out the greater trend of unemployment in the last decade.

Simonson noted that construction employment declined in 292 metropolitan areas between April 2009 and April 2010 and held steady in another 28 areas. The construction economist said there was little reason to expect broad gains in construction employment for the foreseeable future.

“While the stimulus, military construction and home building should help, overall construction demand is likely to remain weak well into 2011 for most regions,” Simonson said.

Association officials added that without Congressional and White House action on overdue infrastructure programs, including transportation, aviation and water legislation, construction employment would continue to suffer.

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