Thursday, September 18, 2014

The Highs and Lows of Construction Unemployment Rates



State-level construction employment numbers are available monthly from the Bureau of Labor Statistics, but jobless rates are not.

Therefore, for a state-by-state comparison of construction unemployment rates, the best one can do is to look at annual-average figures.

The Great Recession in the U.S., or as I’d prefer to call it, the Enormous Freaking Crater (EFC), ran from Q1 2008 through Q2 2009.


(Nowadays, when we say something’s great, we’re being complimentary. Tying the word “great” to recession seems to imply there was much that was good about it. Not that I’m aware of. Yes, I know it’s a linguistic “nod” to the Great Depression of the 1930s, but maybe that period was mislabeled as well.)
There was carryover of con
struction work initiated earlier that helped sustain employment levels for a while. It came to an end in 2010, making that year the worst for construction unemployment rates in America.

Table 1 shows the annual levels of the construction jobless rates in all the states in 2010 and every year since.

How bad were on-site work prospects in 2010? That year, only three located-on-top-of-one-another states North Dakota (7.9%), South Dakota (8.7%) and Nebraska (8.1%) recorded annual-average construction jobless rates that were below double-digit percentages.

Sixteen states, or approximately one-third of the total, recorded construction jobless rates that were more than 20.0%. Most horrendous was Nevada, with a construction jobless figure of 40.7%.

Of course, Nevada was also the epicenter of the housing market collapse. The home price bubble in Las Vegas didn’t just burst. Its implosion was the real estate equivalent of a celestial black hole.

Oregon (26.0%) and Illinois (25.7%) were next in line for catastrophic results.

There have been gradual improvements in the construction unemployment rates in nearly all the states since then. Only Louisiana had a higher percentage in 2013 (10.6%) than in 2010 (10.3%).
Rebuilding after 2005’s Hurricane Katrina was still making a contribution in 2010.

Last year, exactly half of all states recorded construction jobless rates that were less than 10.0%.
Among the 13 states with the lowest construction jobless rates, six have been benefitting from oil and gas development. North Dakota (5.6%), driven by a shale rock “fracking” boom, returned to its number one ranking in 2013 after being beaten briefly by Nebraska (5.3%) in 2012.

In Canada, not seasonally adjusted (NSA) construction unemployment rates are available monthly from Statistics Canada. August levels going back six years are shown in Table 2. North of the border, construction sector unemployment soared highest in 2009.

The public sector quickly responded. A huge infrastructure program launched by the federal government, with added financial backing from the provinces and municipalities, alleviated on-site job losses during 2010, 2011 and 2012.
2010 to 2013 History of U.S. State Construction Unemployment Rates
(average annual levels)
State (and District)






Alphabetical

2010*

2011
2012
2013







Alabama, AL

21.5%

18.2%
12.7%
11.8%
Alaska, AK

14.1%

16.8%
13.2%
13.6%
Arizona, AZ

18.1%

16.0%
11.2%
8.5%
Arkansas, AR

13.4%

8.5%
8.6%
13.0%
California, CA

23.9%

19.5%
14.9%
11.1%
Colorado, CO

15.7%

15.2%
13.4%
8.0%
Connecticut, CT

15.7%

12.7%
13.5%
9.7%
Delaware, DE

12.0%

9.3%
14.9%
10.2%
District of Columbia, DC

20.7%

19.4%
18.0%
19.6%
Florida, FL

20.2%

18.5%
15.0%
10.6%
Georgia, GA

15.0%

14.5%
12.0%
8.9%
Hawaii, HI

14.9%

17.5%
12.0%
9.7%
Idaho, ID

20.7%

16.5%
8.8%
7.9%
Illinois, IL

25.7%

17.7%
17.1%
15.6%
Indiana, IN

24.3%

15.0%
12.1%
10.4%
Iowa, IA

12.0%

11.9%
9.4%
8.4%
Kansas, KS

14.2%

11.8%
8.7%
7.9%
Kentucky, KY

16.3%

15.4%
13.1%
12.2%
Louisiana, LA

10.3%

10.4%
12.2%
10.6%
Maine, ME

16.4%

15.5%
12.9%
11.2%
Maryland, MD

14.4%

13.2%
10.0%
10.0%
Massachusetts, MA

15.5%

11.6%
7.6%
8.6%
Michigan, MI

24.8%

19.5%
16.7%
10.6%
Minnesota, MN

14.9%

10.0%
11.0%
9.2%
Mississippi, MS

18.7%

14.2%
8.6%
11.5%
Missouri, MO

16.5%

11.6%
10.4%
12.0%
Montana, MT

14.1%

16.3%
11.2%
9.0%
Nebraska, NE

8.1%

7.3%
5.3%
6.7%
Nevada, NV

40.7%

32.0%
19.5%
18.6%
New Hampshire, NH

16.0%

9.2%
6.8%
7.0%
New Jersey, NJ

16.3%

14.6%
15.6%
12.4%
New Mexico, NM

21.1%

15.1%
14.9%
13.4%
New York, NY

13.5%

13.4%
14.1%
11.2%
North Carolina, NC

21.6%

16.2%
12.4%
9.2%
North Dakota, ND

7.9%

7.1%
6.7%
5.6%
Ohio, OH

20.5%

16.1%
13.4%
12.8%
Oklahoma, OK

13.5%

7.3%
7.8%
6.8%
Oregon, OR

26.0%

14.2%
14.1%
9.6%
Pennsylvania, PA

17.0%

14.1%
14.5%
14.9%
Rhode Island, RI

20.6%

21.3%
22.7%
16.6%
South Carolina, SC

23.2%

15.9%
10.5%
9.5%
South Dakota, SD

8.7%

8.0%
8.7%
6.0%
Tennessee, TN

18.3%

15.0%
10.9%
13.6%
Texas, TX

11.8%

10.2%
9.7%
7.3%
Utah, UT

17.5%

10.5%
10.9%
6.7%
Vermont, VT

12.5%

11.2%
8.7%
6.9%
Virginia, VA

12.7%

10.1%
5.9%
6.6%
Washington, WA

21.8%

19.3%
17.3%
14.2%
West Virginia, WV

19.4%

13.2%
15.8%
8.9%
Wisconsin, WI

17.3%

14.6%
13.6%
12.2%
Wyoming, WY

10.9%

10.3%
8.5%
6.4%
The U.S. economic recession lasted from the beginning of 2008 to the mid-point of 2009, but the worst year for construction unemployment rates occurred in 2010.

The 4 states inside text boxes are the most populous(i.e., 1 out of every 3 Americans lives in California, Texas, New York or Florida.)

Data source: Bureau of Labor Statistics.
Table: Reed Construction Data.
Ranking of U.S. States by 2013 Construction Unemployment Rates
(average annual levels)
Rank
State (and District)

2010*

2011
2012
2013








1
North Dakota, ND

7.9%

7.1%
6.7%
5.6%
2
South Dakota, SD

8.7%

8.0%
8.7%
6.0%
3
Wyoming, WY

10.9%

10.3%
8.5%
6.4%
4
Virginia, VA

12.7%

10.1%
5.9%
6.6%
5
Nebraska, NE

8.1%

7.3%
5.3%
6.7%
6
Utah, UT

17.5%

10.5%
10.9%
6.7%
7
Oklahoma, OK

13.5%

7.3%
7.8%
6.8%
8
Vermont, VT

12.5%

11.2%
8.7%
6.9%
9
New Hampshire, NH

16.0%

9.2%
6.8%
7.0%
10
Texas, TX

11.8%

10.2%
9.7%
7.3%
11
Idaho, ID

20.7%

16.5%
8.8%
7.9%
12
Kansas, KS

14.2%

11.8%
8.7%
7.9%
13
Colorado, CO

15.7%

15.2%
13.4%
8.0%
14
Iowa, IA

12.0%

11.9%
9.4%
8.4%
15
Arizona, AZ

18.1%

16.0%
11.2%
8.5%
16
Massachusetts, MA

15.5%

11.6%
7.6%
8.6%
17
Georgia, GA

15.0%

14.5%
12.0%
8.9%
18
West Virginia, WV

19.4%

13.2%
15.8%
8.9%
19
Montana, MT

14.1%

16.3%
11.2%
9.0%
20
Minnesota, MN

14.9%

10.0%
11.0%
9.2%
21
North Carolina, NC

21.6%

16.2%
12.4%
9.2%
22
South Carolina, SC

23.2%

15.9%
10.5%
9.5%
23
Oregon, OR

26.0%

14.2%
14.1%
9.6%
24
Connecticut, CT

15.7%

12.7%
13.5%
9.7%
25
Hawaii, HI

14.9%

17.5%
12.0%
9.7%
26
Maryland, MD

14.4%

13.2%
10.0%
10.0%
27
Delaware, DE

12.0%

9.3%
14.9%
10.2%
28
Indiana, IN

24.3%

15.0%
12.1%
10.4%
29
Florida, FL

20.2%

18.5%
15.0%
10.6%
30
Louisiana, LA

10.3%

10.4%
12.2%
10.6%
31
Michigan, MI

24.8%

19.5%
16.7%
10.6%
32
California, CA

23.9%

19.5%
14.9%
11.1%
33
Maine, ME

16.4%

15.5%
12.9%
11.2%
34
New York, NY

13.5%

13.4%
14.1%
11.2%
35
Mississippi, MS

18.7%

14.2%
8.6%
11.5%
36
Alabama, AL

21.5%

18.2%
12.7%
11.8%
37
Missouri, MO

16.5%

11.6%
10.4%
12.0%
38
Kentucky, KY

16.3%

15.4%
13.1%
12.2%
39
Wisconsin, WI

17.3%

14.6%
13.6%
12.2%
40
New Jersey, NJ

16.3%

14.6%
15.6%
12.4%
41
Ohio, OH

20.5%

16.1%
13.4%
12.8%
42
Arkansas, AR

13.4%

8.5%
8.6%
13.0%
43
New Mexico, NM

21.1%

15.1%
14.9%
13.4%
44
Alaska, AK

14.1%

16.8%
13.2%
13.6%
45
Tennessee, TN

18.3%

15.0%
10.9%
13.6%
46
Washington, WA

21.8%

19.3%
17.3%
14.2%
47
Pennsylvania, PA

17.0%

14.1%
14.5%
14.9%
48
Illinois, IL

25.7%

17.7%
17.1%
15.6%
49
Rhode Island, RI

20.6%

21.3%
22.7%
16.6%
50
Nevada, NV

40.7%

32.0%
19.5%
18.6%
51
District of Columbia, DC

20.7%

19.4%
18.0%
19.6%

The U.S. economic recession lasted from the beginning of 2008 to the mid-point of 2009, but the worst year for construction unemployment rates occurred in 2010.

The states with blue shading are the "Top 10" oil producers.

Data source: Bureau of Labor Statistics.
Table: Reed Construction Data.
2009 to 2014 History of Provincial Construction Unemployment Rates
(August of each year)
Province








East to West

2009*

2010
2011
2012
2013
2014









Newfoundland and Labrador, NL

27.8%

24.7%
17.6%
8.3%
11.5%
18.2%
Prince Edward Island, PE

5.8%

11.9%
10.0%
12.1%
4.1%
4.4%
Nova Scotia, NS

7.1%

9.6%
8.5%
14.6%
11.3%
11.9%
New Brunswick, NB

11.5%

11.9%
7.3%
12.7%
8.8%
10.3%
Quebec, QC

9.3%

7.7%
5.1%
5.9%
5.8%
5.9%
Ontario, ON

7.8%

6.2%
4.6%
6.1%
3.6%
4.5%
Manitoba, MB

3.7%

5.0%
4.8%
4.0%
1.7%
6.1%
Saskatchewan, SK

2.2%

3.0%
3.6%
3.3%
2.8%
3.4%
Alberta, AB

7.3%

7.4%
4.0%
4.8%
5.2%
2.8%
British Columbia, BC

9.4%

6.9%
5.9%
3.8%
6.1%
5.7%

Provinces in text boxes: 61% of all Canadians (or 3 of 5) live in either Ontario (38%) or Quebec (23%).

The Canadian economic recession lasted from Q4 2008 through Q2 2009.

The worst year for construction unemployment in Canada occurred in 2009.

Data source: Statistics Canada (Cansim Table 282-0007).
Table: Reed Construction Data.
Ranking of Canadian Provinces by Construction Unemployment Rates
(August of each year)
Rank
Province

2009*

2010
2011
2012
2013
2014










1
Alberta, AB

7.3%

7.4%
4.0%
4.8%
5.2%
2.8%
2
Saskatchewan, SK

2.2%

3.0%
3.6%
3.3%
2.8%
3.4%
3
Prince Edward Island, PE

5.8%

11.9%
10.0%
12.1%
4.1%
4.4%
4
Ontario, ON

7.8%

6.2%
4.6%
6.1%
3.6%
4.5%
5
British Columbia, BC

9.4%

6.9%
5.9%
3.8%
6.1%
5.7%
6
Quebec, QC

9.3%

7.7%
5.1%
5.9%
5.8%
5.9%
7
Manitoba, MB

3.7%

5.0%
4.8%
4.0%
1.7%
6.1%
8
New Brunswick, NB

11.5%

11.9%
7.3%
12.7%
8.8%
10.3%
9
Nova Scotia, NS

7.1%

9.6%
8.5%
14.6%
11.3%
11.9%
10
Newfoundland and Labrador, NL

27.8%

24.7%
17.6%
8.3%
11.5%
18.2%

Shaded with blue are Canada's "Top Three" oil-producing provinces.

The Canadian economic recession lasted from Q4 2008 through Q2 2009.

The worst year for construction unemployment in Canada occurred in 2009.

Data source: Statistics Canada (Cansim Table 282-0007).
Table: Reed Construction Data

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