AGC Reports Employment Declines in Construction Sector

The Associated General Contractors of America reports that construction employment declined in 236 out of 337 metropolitan areas between September 2009 and September 2010.

The AGC information is based on analysis of federal employment data released by the Associated General Contractors of America (AGC). Meanwhile, the number of metro areas adding jobs – 56 – matched the previous month’s data. The AGC notes that the figures indicate the construction sector remains weak more than a year after the official end of the recession.

“The recession may have ended for the overall economy, but not for construction in most metro areas,” says Ken Simonson, the association’s chief economist. “Despite tremendous short-term help from the stimulus, this industry is a long way from experiencing a recovery.”

While the stimulus and other temporary federal construction spending have helped offset some construction employment declines, other measures are still needed to boost construction demand, association officials note.

In a release, the AGC cautions that Congress and the Obama Administration have yet to act on several key measures in the association’s construction recovery plan, including passing multi-year water, transportation and energy investment bills and making the 2001 and 2003 tax cuts permanent.

“Washington’s failure to pass long-delayed infrastructure bills, set annual tax rates or address costly red tape and regulations is undermining any benefits that came from the stimulus,” says Stephen Sandherr, the association’s CEO. “Our worry is that Washington’s failures will make a bad construction employment situation even worse.”