Construction employment rose in 30 states in March as the industry expanded, although at a slower pace than in February, according to an analysis by the Associated General Contractors of America of Labor Department data. Construction employment nationwide rose for the 10th consecutive month in March, by 18,000, following an increase of 49,000 in February.

According to Ken Simonson, the association’s chief economist, residential and private nonresidential construction is expanding, but investment in infrastructure and public buildings is still on a downward path. This affects employment in states with a large federal presence.  Those states remain vulnerable to construction cutbacks from newly enacted and proposed decreases in federal funding for infrastructure.

Simonson noted that hiring for recovery work from Hurricane Sandy may be the reason New York had the largest increase in construction employment between February and March (6,000 jobs, 1.9 percent) and Connecticut had the largest percentage increase (5.7 percent, 2,900 jobs). Florida added the second-largest number of construction jobs for the month (5,500, 1.6 percent), while Arkansas was second in percentage increase (4.5 percent, 2,000 jobs).

Twenty states and the District of Columbia lost construction jobs between February and March. The largest losses occurred in Missouri (-3,400 jobs, -3.2 percent). Ohio had the second-highest loss of jobs (-3,300, -1.9 percent), followed by Michigan, which had the second-highest percentage decline (-2.4 percent, -3,100 jobs).

Simonson reported that 31 states and D.C. added construction jobs from March 2012 to March 2013 and 19 states lost workers. Alaska led all jurisdictions in the percentage of new construction jobs (11.4 percent, 1,900 jobs); followed by Hawaii (10.7 percent, 3,100 jobs); Utah (8.7 percent, 6,000 jobs) and Louisiana (8.6 percent, 10,700 jobs). California added the most new construction jobs over the past 12 months (41,000, 7.1 percent), followed by Texas (39,800 jobs, 6.9 percent).

Among the 19 states losing construction jobs during the past year, Rhode Island lost the highest percentage (-9.6 percent, -1,600 jobs); followed by Montana (-8.1 percent, -1,900 jobs) and South Dakota (-7.7 percent, -1,700 jobs). Ohio lost the most jobs (-9,500 jobs, -5.2 percent); followed by Illinois (-8,500 jobs, -4.4 percent) and North Carolina (-5,300 jobs, -3.0 percent).

Association officials said the cuts in federal funding for construction enacted in March would push employment totals lower in states with large military and federal civilian facilities. They urged policy makers to make infrastructure investment a priority even while cutting other categories of federal spending to bring down deficits.

View the state employment data by rank and by state.

With increasing demand for design services, the Architecture Billings Index (ABI) is continuing to strengthen. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI score was 54.9, up slightly from a mark of 54.2 in January. This score reflects a strong increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 64.8, higher than the reading of 63.2 the previous month – and its highest mark since January 2007.

Key February ABI highlights:

• Regional averages: Northeast (56.7), Midwest (54.7), West (54.7), South (52.7)
• Sector index breakdown: multi-family residential (60.9), mixed practice (56.9), commercial / industrial (53.3), institutional (50.7)
• Project inquiries index: 64.8

The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.

Construction employment also on the rise
That’s not the only good news. According to data just released by the Associated General Contractors of America, construction employment increased in 145 out of 339 metropolitan areas between January 2012 and January 2013, declined in 141 and was stagnant in 53 metro areas. Association officials noted that after years of declining construction employment contractors in some metro areas are beginning to worry about the availability of skilled workers now that they have resumed hiring.

Pascagoula, Miss. added the highest percentage of new construction jobs (45 percent, 1,500 jobs) followed by Brownsville-Harlingen, Texas (19 percent, 600 jobs); Cheyenne, Wyo. (19 percent, 500 jobs) and Haverhill-North Andover-Amesbury, Mass.-N.H. (18 percent, 600 jobs). Dallas-Plano-Irving, Texas (10,100 jobs, 10 percent) added the most jobs. Other areas adding a large number of jobs included Los Angeles-Long Beach-Glendale, Calif. (9,600 jobs, 9 percent); Houston-Sugar Land-Baytown, Texas (8,700 jobs, 5 percent) and Phoenix-Mesa-Glendale, Ariz. (6,000 jobs, 7 percent).

The largest job losses were in Chicago-Joliet-Naperville, Ill. (-3,500 jobs, -3 percent) and Detroit-Livonia-Dearborn, Mich. (-3,500 jobs, -19 percent); followed by Northern Virginia (-3,200 jobs, -5 percent); and Charleston, W.V. (-2,900 jobs, -20 percent). Charleston, W.V. lost the highest percentage. Other areas experiencing large percentage declines in construction employment included Atlantic City-Hammonton, N.J. (-19 percent, -1,000 jobs); Detroit-Livonia-Dearborn, Mich.; Kankakee-Bradley, Ill. (-18 percent, -200 jobs) and Akron, Ohio (-17 percent, -1,800 jobs).

Association officials noted that after years of declining construction employment, many former construction workers have left for other industries or retired. They added that the industry’s dire conditions have deterred many graduates from pursuing careers in construction and as a result, the industry is likely to face a shortage of available skilled workers in some parts of the country if the industry continues to add jobs.

View construction employment figures by state and rank.

As the prognosis for the design and construction industry continues to improve, the Architecture Billings Index (ABI) is reflecting its strongest growth since November 2007.  As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.  The American Institute of Architects (AIA) reported the January ABI score was 54.2, up sharply from a mark of 51.2 in December. (Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.)

This score reflects a strong increase in demand for design services (any score above 50 indicates an increase in billings).  The new projects inquiry index was 63.2, much higher than the reading of 57.9 the previous month.

Key January ABI highlights:

• Regional averages: Midwest (54.4), West (53.4), South (51.7),  Northeast (50.3)
• Sector index breakdown: mixed practice (54.9), multi-family residential (54.5), commercial / industrial (52.0), institutional (50.2)
• Project inquiries index: 63.2

The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.

Construction employment increased in 139 out of 337 metropolitan areas between December 2011 and December 2012, declined in 131 and was stagnant in 65, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials noted that growing private sector demand for new construction projects boosted employment in a slight plurality of metro areas.

Pascagoula, Miss. added the highest percentage of new construction jobs (42 percent, 1,900 jobs) followed by Haverhill-North Andover-Amesbury, Mass.-N.H. (22 percent, 800 jobs); Lafayette, La. (17 percent, 1,100 jobs) and Omaha-Council Bluffs, Neb.-Iowa (16 percent, 3,000 jobs). Houston-Sugar Land-Baytown, Texas (17,600 jobs, 10 percent) added the most jobs. Other areas adding a large number of jobs included Dallas-Plano-Irving, Texas (8,300 jobs, 8 percent); Seattle-Bellevue-Everett, Wash. (7,800 jobs, 12 percent); Boston-Cambridge-Quincy, Mass. (5,900 jobs, 12 percent) and Los Angeles-Long Beach-Glendale, Calif. (5,700 jobs, 5 percent).

The largest job losses were in Atlanta-Sandy Springs-Marietta, Ga. (-4,900 jobs, -5 percent); followed by Portland-Vancouver-Hillsboro, Ore.-Wash. (-3,600 jobs, -7 percent); Tampa-St. Petersburg-Clearwater, Fla. (-3,500 jobs, -7 percent) and Northern Virginia (-3,200 jobs, -5 percent). Jackson, Miss. (-20 percent, -2,000 jobs) lost the highest percentage. Other areas experiencing large percentage declines in construction employment included Columbus, Ind. (-19 percent, -300 jobs); Springfield, Mass.-Conn. (-18 percent, -1,400 jobs) and Danville, Ill. (-13 percent, -100 jobs).

Association officials noted that construction employment is benefitting from growing demand for construction, driven primarily by the private sector. They added that the rebounding housing market and relatively strong demand for health care, energy and higher education facilities boosted construction spending levels by over 7 percent for the year through November. But they cautioned that construction spending was still more than $300 billion below peak levels amid declining public sector activity and weaker demand for office, retail and lodging.

View construction employment figures by state and rank.