The construction industry added 5,000 jobs in April, while the industry’s unemployment rate declined slightly to 17.8 percent, nearly twice the national average, according to an analysis of new federal employment data released by The Associated General Contractors of America. Association officials said the figures continue a year-long trend of little change in construction employment after years of steep declines and predicted the stagnation is unlikely to change soon.
“The construction industry may have stopped bleeding jobs, but there is no sign that employment levels are set to bounce back,” Ken Simonson, the association’s chief economist, said. “With declines in public-sector investments likely to offset increases in some private-sector construction activity, we are unlikely to see significant increases in construction employment for the foreseeable future.”
Simonson said the nonresidential-construction sector added 10,000 jobs in April, while the residential sector lost 5,400 jobs. The largest gains came from heavy and civil-engineering construction, likely reflecting the start of construction on a number of stimulus and other publicly funded projects that were halted during the winter. Meanwhile, employment declined in both the nonresidential-specialty-trade-contractor and nonresidential-building categories, possibly reflecting weak demand for office, retail, and school construction.
Association officials said construction employment is likely to remain relatively stagnant through much of 2011, as federal, state, and local governments cut investments in infrastructure and other construction projects. They said expected increases in multifamily, manufacturing, and power construction would help offset public-sector declines, but might not be enough to lead to significant increases in construction employment.