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Home » Washington lost construction jobs in May, analysis says

Washington lost construction jobs in May, analysis says

Industry gains employment in fewer than half of states as demand remains tepid

June 30, 2011

Construction employment growth remained sluggish and uneven in May across the U.S. as nearly half of the states—22 plus the District of Columbia—added jobs during the past year while the remaining states all lost construction jobs, a new analysis shows.

The Associated General Contractors of America conducted the analysis, using state employment data released by the U.S. Labor Department. Association officials say the figures reflect the fact that industrywide employment has stagnated as the result of tepid demand for most private construction and declines in public construction.

"It's not surprising to see close to an even split between states adding and losing jobs given that year-over-year construction employment for May was unchanged," says Ken Simonson, the association's chief economist. "There just isn't enough demand for new construction to drive nationwide boosts in construction employment."

Washington was one of the states that lost construction jobs during the 12-month period, with 2,400 fewer workers last May than in May 2010. That was a 1.7 percent decrease in construction employment. Of the 28 states that lost jobs, three had lower percentage decreases than Washington: Iowa, minus 0.2 percent; Mississippi, minus 1 percent; and New York, minus 1.5 percent.

Of the 23 locations, including District of Columbia, with year-over-year increases, the largest percentage gains occurred in Michigan, 5.2 percent, 6,300 jobs; followed by Hawaii, 4.2 percent, 1,200 jobs; Texas, 4.1 percent, 23,200 jobs; and Tennessee, 4 percent, 4,200 jobs.

Of the 28 states with decreases over the year, the largest percentage drop in construction employment took place in Nevada, minus 10.8 percent, or 6,500 jobs; followed by Rhode Island, minus 10 percent, or 1,600 jobs; Georgia, minus 8.5 percent, 12,700 jobs; Vermont, minus 7.9 percent, 1,100 jobs; and Colorado, minus 7.7 percent, 8,900 jobs. Florida lost the largest number of jobs, at 14,300 jobs, followed by Georgia, Colorado, North Carolina, and Maryland.

In month-to-month comparisons, Simonson notes that 23 states added jobs in May compared with April, while 27 states lost jobs. Construction employment was unchanged for the month in the District of Columbia.

Washington state lost jobs in May, compared with April, with 1,300 fewer jobs, for a 0.9 percent decrease.

South Dakota had the largest percentage rise in industry employment, 7.4 percent, or 1,400 jobs; followed by Hawaii, 6 percent, 1,700 jobs. Florida added 4,100 jobs, more than any other state.

The largest monthly percentage losses occurred in Alaska, minus 4.9 percent, or 800 jobs; followed by Rhode Island, minus 4.0 percent, or 600 jobs. The largest number of construction job losses over the month was in California, minus 5,000 jobs.

Association officials caution that construction employment is likely to remain spotty as long as broader economic growth remains relatively modest.

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