The construction industry posted both good and mixed news last week. The outlook is for more of the same. Construction spending hit a 2-1/2 year high in June, as widespread gains in private nonresidential categories and in both single- and multifamily homebuilding overcame continued slippage in public construction. But construction employment has been stuck near a 16-year low ever since early 2010, and the July employment report showed no improvement.

Construction employment declined by 1,000 in July even though the industry’s unemployment rate fell to the lowest level since 2008, according to an analysis of new federal data released today by the Associated General Contractors of America. The sector’s unemployment rate has steadily declined since 2009 as hundreds of thousands of out-of-work construction workers have left the industry seeking other opportunities, the association’s economist cautioned.

Construction spending in June rose to a 2-1/2 year high as double-digit percentage increases in private residential and nonresidential construction more than offset an ongoing downturn in public construction, according to an analysis of new federal data released today by the Associated General Contractors of America. Association officials said they expect the disparity between private and public construction is likely to persist and urged policy makers to put more funding into infrastructure projects.

Construction employment declined in 162 out of 337 metropolitan areas between June 2011 and June 2012, increased in 127 and stayed stagnant in 48, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that construction employment declined or remained unchanged in most metro areas as the public sector continued to cut back on investments in new construction and infrastructure and economic growth slowed.

Construction employment increased in just half the states plus the District of Columbia from June 2011 to June 2012, but declined in a slim majority of states in the past month, according to an analysis of Labor Department data by the Associated General Contractors of America. 

The amount contractors pay for a range of key construction materials decreased for the second consecutive month in June and inched up by just 0.5 percent from a year earlier, according to an analysis of producer price index figures released today by the Associated General Contractors of America. Meanwhile, the amount contractors charge to construct projects was virtually unchanged for the month and rose only between 3.2 and 4.4 percent from a year ago.

Construction employment stalled in June as more former construction workers left the industry, according to an analysis of new federal data released today by the Associated General Contractors of America.  The lack of current job openings, along with the departure of experienced workers, suggests a potential skilled-labor shortage may be developing, construction association officials warned.

Construction spending in May reached the highest level since December 2009 as widespread gains in private nonresidential construction, single-family and multifamily homebuilding more than offset a continuing downturn in public construction, according to an analysis of new federal data released today by the Associated General Contractors of America.  Association officials said they expect the disparity between private and public construction is likely to persist, although enactment of a federal highway and transit bill will cushion the decline in public spending.

Construction employment declined in 164 out of 337 metropolitan areas between May 2011 and May 2012, increased in 126 and stayed stagnant in 47, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that construction employment continues to suffer even as Congress continues to debate the possible replacement for a highway and transit bill that expired over three years ago, and other infrastructure and economic measures languish.

I testified on June 20 to a hearing held by Congress’s Joint Economic Committee on the American Community Survey (ACS) and the Economic Census. AGC uses information from both sources in state fact sheets that show the role of construction in the economy and the share of small business in each state’s construction industry. I was invited as AGC’s chief economist and as the 2011-12 vice president of the National Association for Business Economics, the professional organization for people who use economic information in their workplace.