Construction Jobs
in Highway and Transit Sector are at Risk, However, if Congress and the Obama
Administration Can’t Find a Way to Pay For and Pass Long-Term Transportation
Bill, Officials Warn
Construction employers added 29,000 jobs in February and
321,000 over the past year, reaching the highest employment total in six years,
as the sector's unemployment rate fell to an eight-year low of 10.6 percent,
according to an analysis by the Associated General Contractors of America.
Association officials cautioned, however, that construction jobs in the highway
and transit sector were at risk because of Washington gridlock.
“Despite challenging weather conditions in much of the
country, both the number of workers and their average weekly hours rose last
month to the highest levels since the recession,” said Ken Simonson, the
association's chief economist. “There are lots of good-paying, full-time jobs
available in construction, with more work on the way.”
Construction employment totaled 6,353,000 in February,
the highest mark since February 2009, with a 12-month gain of 321,000 jobs or
5.3 percent, Simonson noted. Average weekly hours of all employees climbed to
39.6 hours and weekly earnings averaged $1066 in construction, the highest
levels in the nine-year history of both series. Weekly earnings in construction
were 24 percent above the private-sector average.
Residential building and specialty trade contractors
added a combined 16,700 employees since January and 167,800 (7.4 percent) over
12 months. Nonresidential contractors—building, specialty trade, and heavy and
civil engineering construction firms—hired a net of 12,000 workers for the
month and 153,400 (4.1 percent) since February 2014.
The number of workers who said they looked for work in
the past month and had last worked in construction fell from 1,098,000 a year
earlier to 906,000—the lowest February mark in nine years. Although winter
conditions typically result in a high February unemployment rate for
construction, the 10.6 percent unemployment rate for these workers was the
lowest February rate since February 2007 and represented a steep drop from a
year earlier, when the rate was 12.8 percent, Simonson noted.
“Contractors in most states appear optimistic about the
prospects for construction, especially for apartments and private
nonresidential projects,” Simonson added. “In contrast, the highway funding
outlook is murky.”
Association officials said that employment in highway and
transit construction was at risk if Congress and the Obama administration fail
to find a way to pay for, and enact, a long-term federal highway and transit
bill. They said that even as many states
take measures to cope with declining federal transportation funding, if
Washington can’t pass a bill by May 31 when current legislation expires, some
firms may have to reduce staff.
“The highway and transit funding shortfall is one of
those classic Washington-created problems that could easily be fixed,” said
Stephen E. Sandherr, the association’s chief executive officer. “For just a few
dollars more per year, Washington could save commuters and other road users
thousands of dollars by cutting commuting times and improving road conditions.”
Source: AGC
of America
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