Construction employment increased in 26 between July and August and in 35 states for the year, according to an analysis by AGC of America of Labor Department data. Association officials cautioned, however, that construction employment remains below peak levels in most states and warned of the potential impact of a halt in federal construction investments.
There has been little price movement overall in the past few months for either construction materials or bid prices, at least as measured by the Bureau of Labor Statistics’ producer price indexes (PPIs). However, the situation could change abruptly.
Government Shutdown Possible Over Differences of Opinion about How to Defund Obamacare
This week, the House Appropriations Committee introduced a continuing resolution (CR) to fund the daily activities of the federal government, from the start of the fiscal year (FY) on Oct. 1 through Dec. 15, 2013. The CR will fund the government at current post-sequestration levels of $986 billion, which is nearly $20 billion more than House-passed budget levels for FY 2014 and nearly $70 billion lower than the budget levels passed in the Senate for FY 2014. The CR is necessary because the House and Senate have failed to enact any of their 12 annual appropriations bills. The length of the bill is intended to allow congressional leaders and the president to deal with the need to raise the nation’s debt ceiling and other budget issues without the threat of a government shutdown.
Construction employment stagnated in August, while the industry unemployment rate fell and a majority of companies reported difficulty finding workers, according to an analysis of new government data and an industry survey by AGC of America. Association officials called for education and immigration reform measures needed to ensure an adequate supply of skilled workers.
Total construction spending hit a four-year high in July as private residential and nonresidential activity increased while public spending declined, according to an analysis of new Census Bureau data by AGC of America. Association officials urged lawmakers in Washington to make infrastructure investment a top federal priority before funding runs out at the end of September.
An estimated 1,400 people working for Pittsburgh area construction firms and their suppliers will lose their jobs because a Pennsylvania Senate-passed transportation funding measure failed in the state house, according to an analysis released today by AGC of America. Those job losses would be three times higher than the number of construction jobs added in the area during the past year and threaten to reverse recent industry job gains, association officials cautioned.
The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in response to the administration’s decisions to finalize two new employment rules despite federal data indicating no need for the new measures:
“The administration’s decision to finalize two new oppressive employment regulations for federal contractors forces us to object to measures whose goals we support and objectives our members already meet. That is because these rules will force federal contractors to spend an estimated $6 billion a year to produce reams of new paperwork proving they are doing what the federal government already knows they are doing.
Construction employment gains spread to more metropolitan areas between July 2012 and July 2013 than in previous months but full recovery remained elusive as only a few areas have exceeded pre-recession employment records, according to a new analysis of federal employment data released today by AGC of America. Association officials said that despite the gains, construction employment remains below peak levels in most metro areas.
In the next few months, I’ll be speaking to AGC chapters and other organizations that welcome your attendance. In each of these locations, I hope to hear from you about current conditions and the outlook, along with providing my view of the national and local construction scene. Events are listed alphabetically by state and city within states. Contact me if you can’t make an event but would like to meet when I’m in the area.
Construction employment continued its spotty improvement in July, as more states posted year-over-year gains but most states posted decreases compared with June, according to an analysis by AGC of America of Labor Department data. Association officials said the steady improvement in employment in many states was welcome news, but cautioned that the industry's recovery was still fragile.