Michigan joined 38 other states which saw construction employment increase in the month of June compared to June 2013.  Despite a 1.2 percent drop in construction employment from May to June 2014, Michigan put 3,300 more workers to work compared to a year ago, a 2.5 percent hike. That placed us a middling No. 28 among the states in construction employment increases.

“The overall trend in construction employment remains favorable, with three-fourths of states adding jobs on a year-over-year basis,” said Ken Simonson, the AGC’s chief economist on July 18. “But the recovery remains choppy, not steady.  In June, monthly gains occurred in fewer than half the states and the nation added just 6,000 construction jobs.”

In all parts of the country except oil-rich North Dakota, all construction employment remains below peak levels (generally 2008).

Florida led all states in percentage and total gains in construction employment (11.5 percent, 41,700 jobs) between June 2013 and June 2014.  Other states adding a high percentage of new construction jobs for the past 12 months included Nevada (10.5 percent, 5,900 jobs), Utah (9.3 percent, 6,800 jobs), North Dakota (7.9 percent, 2,600 jobs) and Minnesota (7.8 percent, 7,900 jobs).

Twelve states shed construction jobs during the past 12 months, with New Jersey losing the highest percent and total, (-8.1 percent, -11,200 jobs).  Other states that lost a high percentage of jobs include Alaska (-5.5 percent, -900 jobs), New Hampshire (-4.4 percent, -1,000 jobs) and New Mexico (-3.9 percent, -1,600 jobs).

AGC officials noted that the number of states adding new construction jobs for the month declined compared to the prior month.  Uncertainty around the future state of federal infrastructure funding prompted some construction firms to put expansion plans on hold, officials suggested.  They urged the Senate to enact a House-passed bill that keeps federal transportation funding at current levels through May of next year and act on unfinished appropriations bills to fund other infrastructure measures.

“It is hard for firms to grow when they don’t know how much work will be available in just a few weeks,” said Stephen E. Sandherr, the association’s chief executive officer. He added that a series of measures designed to make it easier for states to attract funding for infrastructure that the president announced July 17 should help boost construction employment.

Meanwhile, over at McGraw-Hill Construction which also tracks these things, they reported on July 22 that that new construction starts jumped 6 percent in June to an annual rate of $549.7 billion – the highest level so far in 2014.

There was strengthening in the nonresidential sector, especially manufacturing, and there were modest gains for housing and non-building construction (public works and electric utilities). During the first six months of 2014, total construction starts on an unadjusted basis were $254.1 billion, up 1 percent from the same period a year ago.

“The first half of 2014 revealed a mixed performance by project type,” stated Robert A. Murray, chief economist for McGraw Hill Construction.  “Single family housing stands out as the biggest surprise on the negative side, as its upward trend present for much of 2012 and 2013 has stalled for now.  Public works and electric utilities are seeing generally decreased activity, as expected.  On the positive side, multifamily housing is still proceeding at a healthy clip, and commercial building continues to move hesitantly upward, with office construction this year providing most of the support.

“Manufacturing-related construction surged in the first half of 2014, boosted by the start of several massive chemical plants and refineries, while the institutional building sector is still trying to make the transition from lengthy decline to modest growth.  The year-to-date increase for total construction starts, at a slight 1%, reflects the lackluster activity present in January and February.  More recent statistics suggest that the expansion for total construction is getting back on track in a moderate, if selective, manner.”