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Construction employment increases in 138 out of 337 metro areas

By: Kelli Rogers//April 26, 2011//

Construction employment increases in 138 out of 337 metro areas

Kelli Rogers//April 26, 2011//

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Recent construction employment numbers show a continuation of a five-year slump for the industry. Employment decreased in 153 of 337 metropolitan areas between March 2010 and March 2011, increased in 138 and stayed level in 46, according to an analysis of federal data (PDF) by the Associated General Contractors of America. AGC officials warn that the numbers could worsen as public projects dwindle.

鈥淲e’d love to be wrong, AGC of America spokesman Brian Turmail said, 鈥渂ut nothing indicates that the demand for construction is increasing.鈥

Even with more metro areas adding jobs than in any 12-month period since November 2007, most areas are far below previous peaks for construction employment, according to the analysis.

A significant driving force for construction is private-sector demand, Turmail said, and it’s being affected by a glut of vacant office, retail and manufacturing spaces. Because construction naturally lags development, increasing employment numbers will require rapid economic growth, he said.

AGC officials noted that while private nonresidential and multifamily construction appears to be stabilizing in some markets, gains are likely to be offset by decreases in local budgets and pending drops in public construction.

鈥淲ith federal stimulus, base realignment and Gulf Coast hurricane protection projects trending toward decline, many areas are looking at another downturn in construction employment,鈥 Turmail said.

The Portland-metro area fared better than many from March 2010 to March 2011, with only a 2 percent decrease in employment, from 42,800 jobs to 41,900.

鈥淚n this environment, seeing a loss of just a few hundred jobs in a metro area like Portland can be seen as doing better than a lot of areas,鈥 Turmail said.

Salem lost 300 jobs, a 5 percent decrease. The Eugene and Springfield area remained steady, at 4,900 jobs.

Bend suffered the largest decrease in an Oregon metro area; it lost 500 jobs, a 19 percent decrease.

鈥淚n a small community like Bend, when one or two bigger projects end, you’re going to see larger swings in construction numbers,鈥 Turmail said.

鈥淭here are a lot of places that have a big hole to climb out of,鈥 he said. 鈥淲e were surprised that as many metro areas added as did in the past year. But contractors are optimists at heart. Of course we would welcome better numbers.鈥

View all AGC construction employment figures by metro area at聽 or by rank.



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