The construction industry added 26,000 jobs between August and
September 2011, according to the Associated General Contractors of America. The
job growth lowers the industry unemployment rate to 13.3 percent. Association
officials said the increase is the first significant change in construction
employment levels since February and reflects growing private sector demand for
nonresidential construction projects.
“These numbers give us
a taste for how investing in construction activity can really boost overall
employment figures,” said Stephen E. Sandherr, the association’s chief
executive officer. “However, the real question is whether these numbers are an
anomaly or the start of a positive trend.”
The bulk of the
construction gains came from the nonresidential sector. Nonresidential building
construction added 13,200 jobs in September while nonresidential specialty
trade contractors added 10,700 jobs and heavy and civil engineering
construction added 6,200. Meanwhile, residential building contractors added
only 1,800 jobs while residential specialty trade contractors lost 5,600
jobs.
Sandherr noted that the industry’s 13.3 percent
unemployment rate was an improvement from the 17.2 percent rate of a year
earlier but far above the all-industry rate of 9.1 percent. He cautioned that
much of the decline in the industry’s unemployment rate was caused by
construction workers leaving the industry, as opposed to returning to the
sector’s workforce.
Association officials cautioned that the
increase in construction employment will be short-lived should Congress
continue making cuts to infrastructure and construction programs. They noted
that construction programs accounted for more than half of the fiscal year 2011
federal budget cuts and that Congress and the administration have yet to
finalize aviation, surface transportation or water system legislation that
expired years ago.
“With private sector demand inching back
up, the construction industry is finally on the brink of recovering from years
of hardship and job losses,” Sandherr said. “If Washington continues to cut infrastructure
funding instead of addressing out of control entitlement spending, the industry
will lose whatever momentum it picked up in September.”