Most states see construction employment decline, according to new AGCA report

Posted by IronPlanet on Aug 20, 2012 10:47:00 PM

A recent report by the Associated General Contractors of America (AGCA) examined the state of construction employment in the U.S., and some states are doing well while others are experiencing declines in the number of jobs in this industry. Specifically, 31 states saw their construction employment drop year-over-year.

The report examined the number of new jobs added to the construction industry in 2012 through the end of July, and California saw the largest increase, according to the OC Register. The state's construction companies added about 27,300 jobs between January and July 2012, which is a 5 percent boost compared to the same time period in 2011. The San Antonio Business Journal indicates Texas was hot on the heels of California, as approximately 22,900 jobs have been added in the Lone Star State so far this year. Tennessee was among the 11 states that saw improvement, with a 4.2 percent jump in construction employment from last year for a total of 111,500 jobs in this industry, the Memphis Business
Journal
indicates.

However not all states have fared this well, as more than half the country experienced job losses in the construction sector between the first seven months of 2011 and the same time frame in 2012. For instance, the number of South Carolina construction jobs declined by 2,200 between these two periods. In July 2012, there were roughly 74,600 individuals employed in the construction industry in this eastern state, according to the Charleston Regional Business Journal. Alaska saw the largest decline of 15 percent and Mississippi and Arkansas both saw construction employment fall nearly 11 percent. The news source indicates Florida had the largest number of job losses, down 16,900 positions compared to last year, and Illinois and Missouri each lost nearly 10,000 jobs in this sector.

"Public construction cuts in particular are taking their toll on construction employment in many parts of the country," said Ken Simonson, chief economist for AGCA. "With economic growth remaining sluggish, there is a chance construction employment will begin to slip even more places."

A drop in the number of construction jobs indicates there is not as much work to be done, which means many companies may not be bringing in as much revenue as desired. Companies can consider auctioning off construction equipment items they no longer need such as tillers, backhoes, excavators and dump trucks in order to maximize their profits.

Topics: Construction, Industry Headlines