AGC: Only 23 states add construction jobs in October amid weak public sector demand

Dive Brief:

An Associated General Contractors of America analysis of Labor Department data found that 23 states and Washington, DC, added construction jobs in October, a two-state uptick from September. Year-over year, 35 states added jobs since October 2015.
Michigan generated the highest number of construction positions from September to October (6,000 jobs; 4%), and Nevada generated the largest share (4.7%; 3,600 jobs). Once again, California had the highest job increases from October 2015 (34,100 jobs; 4.6%), and Iowa still had the biggest year-over-year increase (13.2%; 10,400 jobs).
From September to October, Illinois lost the most positions (-3,300 jobs; -1.5%) and Delaware shed the largest share (-2.8%; -600 jobs). Illinois was also the biggest year-over-year loser (-5,500 jobs; -2.5%), with Kansas once again forfeiting the highest percentage (-7.6%; 4,700 jobs).

Dive Insight:

The AGC pointed to the downturn in public works and infrastructure projects as a constraining factor on construction employment, and AGC Chief Economist Ken Simonson said that spending on those projects has fallen 2.2% in the first three quarters of this year. "Firms that perform public-sector work are having a hard time finding enough work to keep their teams together," he said in a press release.

The AGC has emphasized the dual nature of the construction industry right now. On one hand, the private sector is experiencing strong demand and difficulty finding workers to keep up with the pace of projects. On the other hand, public sector spending has lagged behind as governments at all levels struggle to fund infrastructure projects.

AGC officials and others in the construction industry are eager to see more details about President-elect Donald Trump's plans for a $1 trillion infrastructure program and are urging him and Congress to push through spending legislation as quickly as possible after inauguration. AGC CEO Stephen Sandherr said in a release that the incoming Trump administration has "a unique opportunity" to create jobs and rebuild and repair the country's infrastructure.

Trump's advisors first revealed general plans for an infrastructure construction program about a week before the election.Trump's team, though short on specifics, proposed that the private sector be given an 82% tax credit on its investments into user- or fee-based projects, which would be delivered via a public-private partnership-like contract with investors seeing a payoff through collection of tolls and other asset fees. Since the initial announcement, a member of Trump's transition team, former Goldman Sachs executive Steven Mnuchin, has commented that the establishment of an infrastructure bank is also a possibility.