Overall Construction Employment Picture Brightens
But Residential Construction Jobs Fall for 38th Straight Month
By Greg Robertson
California Builder Editor
Employment numbers in the construction industry continued to show signs of improvement in April, according to figures released earlier this month by the U.S. Labor Department.
Construction firms added 14,000 jobs in April, giving the industry a gain of 40,000 jobs since February. Those positive numbers ended a string of nearly three years of employment decreases, thanks in part to jobs created by stimulus-created projects.
"Two straight months of job growth is undoubtedly a good thing for the millions of construction workers struggling to get by," said Terry O'Sullivan, general president of the Laborers' International Union of North America. "Still, the numbers show that unemployment in this vital area of the economy is far, far higher than almost any other part of the labor force."
Despite the addition of 40,000 jobs, unemployment in the construction sector remains at a stunning 21.8 percent across the nation, more than double the national average and the highest April rate since tracking began in 1976.
More than 1.9 million construction workers remain looking for work.
"The good news is the stimulus is for now turning the tide on construction employment," said Ken Simonson, chief economist for the Associated General Contractors of America. "The bad news is the stimulus is temporary, while the construction downturn will be protracted."
Nonresidential construction accounted for most of the gains since February, a clear sign that stimulus projects were the major source for employment. Nonresidential construction added 24,600 jobs in April and 36,500 jobs in March.
While the overall construction picture improved, residential construction employment declined for the 38th consecutive month, shedding another 10,900 jobs in April.
"Adding 40,000 new jobs in two months is encouraging news," Simonson said. "But with nearly 2 million construction workers still unemployed our industry's recovery is far from certain."
O'Sullivan also was discouraged by the overall employment picture.
"We can't afford to let the men and women who build America's basics ... be left behind as the economic recovery continues," O'Sullivan said. "If we do so, it won't just be construction workers who pay the price. It will also be paid by everyone as our basic needs go neglected."
Both men called on Congress to take action to prevent more construction drops as temporary stimulus jobs are completed.
"Without long-term federal investment programs in place, construction employment is likely to suffer significant new declines once the stimulus has run its course," Simonson said. "The best way to build on today's momentum is by enacting the long-term investment programs that are crucial to the nation's continued economic prosperity."
