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Michigan’s miserable, but we’ve got company

Date Posted: February 5 2010

For the first time since the start of the Great Recession, every state and the District of Columbia reported losing construction jobs over the 12 months leading up to December 2009, according to a new analysis of state-by-state employment data released this month. The analysis, conducted by the Associated General Contractors of America, found few signs of a construction industry recovery. (Although six states reported construction job increases between November and December 2009).

“There’s nowhere for construction workers to turn for relief from job losses and hardship,” said Ken Simonson, the association’s chief economist. “Sifting through the monthly variations, it is obvious that construction employment is losing ground almost everywhere.”

Simonson noted that Nevada experienced the largest annual percentage decrease in construction employment (27.7 percent), followed by Wyoming (23.8 percent); Tennessee (20 percent); Montana (19.6 percent); and Arizona (19 percent).

Michigan ranked among the worst states (#42), having lost 16.8 percent of its construction workforce or 24,000 jobs last year. California (#40) lost more construction jobs (116,100) than any other state during the past year.

The best performing states also lost construction jobs from December 2008 to December 2009, but on a smaller scale. The smallest declines in construction employment were in Louisiana (3.5 percent); Washington D.C. (4 percent); Oklahoma (4 percent); West Virginia (4.2 percent); and North Dakota (4.8 percent).

Proponents of instituting right-to-work laws claim that states which are more union-friendly are more likely to drive away business and be hostile to new development. For what it’s worth during 2009, four of the five worst performing states in construction employment are right-to-work states. Conversely, five of the top 10 best performing states did not have right-to-work laws.