The construction industry added 33,000 jobs in February even as the industry’s unemployment rate was 21.8 percent, more than twice the national average, according to an analysis of new federal employment data released today by the Associated General Contractors of America. As welcome as the new figures are, association officials cautioned that it was too early to tell whether the industry is improving or simply benefitting from the more favorable weather in February compared to the previous month.
Ken Simonson, the association’s chief economist, cautioned that despite experiencing the single largest monthly gain in construction employment since March 2007, construction employment is still down by over 2.2 million from the industry’s April 2006 peak, a nearly 30 percent decline. At that time over 7.7 million people worked in construction nationwide, while the industry now employs only 5.5 million people.
The construction economist noted that both residential and nonresidential construction sectors added jobs in February. The largest gains came from the nonresidential specialty trade sector, which added 16,700 jobs during the month. Residential specialty trade contractors added another 11,000 jobs in February. The only segment of the construction industry to shed jobs in February was nonresidential building, which lost 2,000 jobs.
Association officials said that construction employment is likely to post modest gains at best through much of 2011 as stimulus funds dry up and private demand for construction recovers slowly. They added that continued uncertainty about the size and extent of federal budget cuts, combined with repeated delays in enacting multi-year infrastructure investment and repair programs, would make it hard for many construction firms to add jobs.