Tag Archives: spending

Employment and Spending Data Analyses Offers Cause for Celebration—and Concern

In the last two weeks, the Associated General Contractors of America (AGC) released two reports, which combine to show a mixed picture of construction industry employment and spending.

Last week, AGC released an analysis of federal employment data from October 2018 to October 2019 that showed construction employment increased in 65 percent of U.S. metro areas. Despite the overall positive numbers nationwide, the Northeast took a hit. New York City had the largest number of job losses over that time period, losing 6,200, or four percent, of its construction jobs, according to the report. (Fairbanks, AK, had the biggest decrease by percentage, dropping 13 percent which was a loss of 400 jobs.)

The report also showed hourly craftworker positions remain difficult to fill despite the overall job gains. In response to that, the AGC officials “urged the Trump administration and Congress to make it easier to bring in workers for specific jobs that cannot be filled domestically and to strengthen career and technical education opportunities for students seeking alternatives to college.”

second analysis released this week showed construction spending declined .8 percent in October from September. The $1.291 trillion spent in October 2019 remained better than spending in October 2018 by 1.1 percent but, this year, decreases in private nonresidential, multifamily and public projects were too much to override an increase in construction of single-family homes, according to AGC’s analysis of federal spending data. The association blamed trade conflicts for the negative impact.

“Trade friction drags down U.S. economic growth,” AGC’s chief economist Ken Simonson said in a statement, adding, “Businesses that have been hurt by existing tariffs and retaliatory actions by U.S. trading partners or firms facing uncertainty over future trade policy are likely to hold off on construction projects.”