Construction Jobs Stable,
But Uncertainty Looms

 

Little changed for the construction employment landscape in October; in a year-over-year comparison, 28 states shed jobs, while 31 states and the District of Columbia added workers.

Employment remained stagnant for the construction industry in October, increasing year-over-year in 31 states and D.C. but falling in 28 states. Gains in the housing market appear to be overshadowed by larger economic uncertainty, personified by the looming fiscal cliff.

"The industry remains stuck in neutral, with close balance each month between the number of states that add or lose construction jobs," said Ken Simonson, the Associated General Contractors of America's chief economist. "Despite a strong pickup in homebuilding and multifamily construction, uncertainty about the fiscal cliff appears to be holding back private investment, while public agencies keep trimming construction budgets."

New York and Pennsylvania shed the highest number of jobs from October 2011 to October 2012, while Delaware, Arkansas and Alaska lost the highest percentages of their state's construction workforce.

Texas and California added the most construction jobs year-over-year, and the District of Columbia, North Dakota and Nebraska showed the highest percentage increases by state.

The AGC cautioned that the economic slowdown predicted to follow the fiscal cliff's automatic round of tax hikes and spending cuts in January would force many already cash-strapped construction firms to make additional cuts to their workforce. The construction industry has lost more than two million jobs since the peak of the housing boom.