States Split Between June Construction Job Gains, Losses - Modern Distribution Management

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States Split Between June Construction Job Gains, Losses

Despite year-over-year gains, employment levels are still below peaks levels in most states.
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Equal numbers of states gained and lost construction jobs in June, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials said despite most states’ year-over-year gains, construction employment levels are below peak levels for almost every state.

“Job gains and losses were quite different last month from the patterns in the past several years as some lagging states – notably Nevada – added workers, while former high-flyers such as Texas, had layoffs,” said Ken Simonson, the association’s chief economist. “On a year-over-year basis, construction employment has increased in more than two-thirds of the states, but nearly all states lag their pre-recession peaks for construction jobs.”

In June, 23 states and the District of Columbia added construction jobs, while 24 states shed them. Nevada had the largest one-month percentage increase (5 percent, 2,500 jobs), followed by North Dakota (4.2 percent, 1,300) and Iowa (4 percent, 2,600).

Connecticut experienced the sharpest decline in construction employment from May to June (down 3.4 percent, losing 1,900 jobs), followed by West Virginia (down 3 percent, losing 1,100 jobs) and Vermont (down 2.9 percent, losing 400 jobs).

Over the past 12 months, 36 states added construction jobs – the larger number with year-over-year gains since May 2012. Wyoming had the largest 12-month percentage increase (10.4 percent, 2,200 jobs), closely followed by Louisiana (9.7 percent, 12,200) and Arizona (9.7 percent, 11,100). Among the 14 states with construction job losses between June 2012 and June 2013, South Dakota lost the highest percentage (down 6.2 percent, losing 1,300 jobs), followed by Kentucky (down 5.2 percent, losing 3,500 jobs) and Indiana (down 5.1 percent, losing 6,400).

Two states – Louisiana and North Dakota – set new construction employment records in June, but most remain far below their pre-recession peaks, Simonson said. Despite its strong showing in June, Nevada’s construction employment last month was still 64 percent below the June 2006 peak. Similarly, construction employment in Florida and Arizona last month was 49 percent below the June 2006 record highs, in spite of big one-year gains.

Association officials cautioned that the construction industry remains fragile as private sector demand has cooled recently even as public sector investments in construction remain relatively weak. “With current conditions, one misguided regulation and one missed investment opportunity could cost a lot of hard working construction workers their jobs,” said Stephen E. Sandherr, the association’s chief executive officer.

View the state employment data by rank, by state and by change from peak.

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