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Construction Industry Adds Jobs, Sheds Workers in January02-19-14 | News
Construction Industry Adds Jobs, Sheds Workers in January





The construction industry added 179,000 jobs from January 2013 through last month, including an unexpected spike of 48,000 jobs from December to January despite the cold weather that has gripped much of the country. The number of unemployed construction workers actively looking for industry jobs declined by 277,000 year-over-year, however, indicating that nearly 100,000 workers left the industry over the same span.
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Construction employment jumped in January to the highest level since July 2009 with the largest monthly increase in nearly seven years, adding 48,000 jobs from December. The unemployment rate for construction workers actively looking for jobs declined from 16.1 percent in January 2013 to 12.3 percent last month, the lowest January rate since 2008.

For the year, construction employment rose by 179,000, or 3.1 percent of the workforce. Nonresidential construction firms added 31,300 new jobs in January and 57,100 (1.6 percent) over 12 months while residential firms added 16,800 jobs for the month and 121,400 (5.8 percent) over the year, according to an Associated General Contractors of America (AGC) report on recent government data.

"Despite a second month of unusually severe weather in much of the nation, contractors more than offset the job losses that occurred in December," said Ken Simonson, the AGC's chief economist. "All segments of the industry added workers for the month, and the sector has increased employment at nearly double the all-industry rate in the past 12 months."

Construction employment totaled 5,922,000 in January, the highest total in 4-1/2 years. The number of unemployed construction workers decreased from 1,322,000 in January 2013 to 1,045,000 last month. That 277,000-worker drop exceeded the growth of construction employment by nearly 100,000, implying that many experienced former construction workers have left the industry in the past year, in line with an AGC survey last month that found many contractors reporting difficulty finding skilled workers.

"Encouraging as it is to see firms adding jobs, there just aren't that many construction workers in many parts of the country waiting to get called back to work," said Stephen Sandherr, the AGC's chief executive officer. "Unless we act soon, many firms will be forced to delay projects as they scramble to find enough qualified workers to meet demand."







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