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NEWS BRIEFS

Date Posted: November 12 2010

Employment up a bit, but industry still lags

Even as the number of people working in construction creeped up by 5,000 between September and October 2010, the industry’s unemployment rate rose to 17.3 percent, according to an analysis of federal employment figures released Nov. 5 by the Associated General Contractors of America.

Temporary government investments boosted commercial construction employment, offsetting further job losses in residential construction, association officials noted.

“Despite significant help from programs like the BRAC (Base Realignment and Closure) and the stimulus, construction employment continues to lag behind much of the private sector,” said Stephen E. Sandherr, the association’s chief executive officer. “It is yet another indicator that the economy has a long way to grow before demand for new office buildings, retail centers and manufacturing facilities returns.”

Association officials noted that construction employment lagged behind other sectors of the economy. For example, while total private employment rose by 1.1 million during the past 12 months, the construction industry lost 122,000 jobs. Meanwhile, the industry’s unemployment rate is nearly double the unadjusted national rate of 9.5 percent.

Nonresidential construction fared relatively well in October, adding 10,300 jobs since September , while residential construction lost 5,800 jobs.

“There will be much talk about a dramatic shift in the aftermath of the 2010 mid-term elections, said Laborers General President Terry O’Sullivan, “but here’s what hasn’t changed: Nearly one in 10 American workers is unemployed.  In the construction industry – a key driver of our economy – nearly 1 in 5 workers, or 1.5 million men and women, are jobless.

“While nations such as China invest nearly 10 percent of their gross domestic product in…fundamental, critical infrastructure, U.S. investment has dropped below 2 percent.  Throughout our history, investing in building America has been a bipartisan mission…Our nation’s ability to compete is at stake while hundreds of thousands of workers who want to build our country sit idle.”

O’Sullivan added that the “best way for the next Congress to start to show that America is their priority is to pass a fully invested, six-year Surface Transportation Bill which would begin to put our nation back on competitive footing in the world, return millions of Americans to work and leave a lasting legacy for taxpayers and future generations.”