CONSTRUCTION JOBS RECOVERY LAGS IN THE WEST (04/04/2011)
By Jim Haughey, Reed Construction Data

The rebound of construction activity from the deep recession is very uneven across the US. Construction jobs have increased over the last twelve months through February in only seventeen states. Total job gains have been far larger than construction job gains in each of these states. Twenty-seven states have had an increase in total jobs while construction jobs continued to decline. Six states had a decline in both total and construction jobs.

All but five the states with construction job gains over the last year are east of the Mississippi. This includes the strong Texas economy and the spillover into adjoining Louisiana and Oklahoma plus California and Oregon on the Pacific Coast where the economy is being lifted by the strong recovery in technology industries.

The six states with losses in total employment have all had their recessions aggravated by state spending cutbacks. Except for New Jersey, none of these states had been experiencing significant negative net domestic outmigration before the recession. But they are slow to recover because they have relatively small share of today’s high growth industries: finance, professional services, healthcare and technology.

Gains in total jobs in twenty-seven states, as much as 75,200 new jobs in Illinois, have not yet translated to increased demand for building space, facility capacity or property maintenance. Illinois, New York, Rhode Island and possibility Wisconsin have slim, if any, population gains in the last few years. All of these states are suffering from public spending cutbacks. Most have relatively high unemployment rates which reduce home buying, home remodeling and home maintenance. Note that the electricians, landscapers, plumbers and painters are construction workers even if most of their business is routine home maintenance. Also, most of these states, notably Florida and Georgia, had relatively large surpluses of building space before the recession due to speculative overbuilding and overly aggressive mortgage lending.

Rising total employment will eventually spur enough space demand or resumption of routine maintenance to begin a sustained rise in construction jobs in every state. But this will take more a year more of economic recovery.

Job change: Feb ’10 to Feb ’11
Decline in both construction and total Jobs
 ConstructionTotal  ConstructionTotal
AZ-2,600-600 NJ-2,100-6,500
KS-3,200-13,800 NM-1,200-6,800
MO-4,700-9,900 NV-5,900-7,400
Decline in construction jobs but rise in total jobs
 ConstructionTotal  ConstructionTotal
AK-4007,900 MT-4002,000
AL-4,0009,700 NC-6,40030,500
AR-1,30022,900 ND-10016,100
CO-8,90013,800 NE-1,70012,100
FL-15,80032,700 NH-1,3008,000
GA-12,80012,200 NY-14,00056,400
HI-1,40010,000 RI-7002,200
IA-1,10012,000 SC-3,10023,200
ID-1,3008,700 SD-7004,600
IL-2,00075,200 UT-1,70014,600
IN-3,70024,800 WA-5,10026,000
KY-3,30028,900 WI-8,70025,300
MA-3,00033,500 WV-2,1006,500
MN-4,40016,300    
Rise in both construction and total jobs
 ConstructionTotal  ConstructionTotal
CT2,90024,500 OK30013,300
CA6,40097,400 OR1,90032,300
DC70011,500 PA14,300106,800
DE1,1007,400 TN8,70037,300
LA1,50017,300 TX31,500254,200
ME1,2005,400 VA8,50049,200
MI6,70071,000 VT2008,300
MS2,70011,600 WY3002,500
OH2,60077,600   

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