Jobs in Construction Created by Stimulus

The American Recovery and Reinvestment Act has reached part of its goal, to provide more jobs for Americans, at least in the construction industry.

The Associated General Contractors of America recently completed a study that found the stimulus bill is making it possible for construction companies throughout the country to hire new workers. The goal of the report, according to an article by Boston/SF, was to show how federally-funded infrastructure and construction projects can help improve overall economic conditions.

“Early reports indicate that the infrastructure piece of stimulus is beginning to do exactly what was intended, put construction workers back on the job,” Ken Simonson, chief economist for the Associated General Contractors of America, said in the article. “As today’s (May 10) employment report shows, however, construction is still one of the hardest-hit industries in terms of job losses.”

When more stimulus-funded projects are awarded, an increasing number of member companies have been able to recruit workers for new jobs or rehire laid-off employees. For instance, after receiving funds for an interstate reconstruction contract, Loch Sand and Construction Company, based in Missouri, rehired 15 workers who were laid off last year.

Adolfson & Peterson Construction, based in Minnesota, won a contract to build a new laboratory in Northern Minnesota with stimulus money from the U.S. Department of Energy. That contract has allowed the company to begin hiring new workers.

Pike Construction, based in New Hampshire, was awarded road construction projects funded by the stimulus, allowing the company to hire 30 new employees. Other companies, like Pyramid Electrical Contractors in Illinois and Slack and Company in Texas, have canceled plans to layoff new workers and instead plan to hire new employees.

In fact, about 85 percent of construction companies said they plan to cancel layoffs or add new employees because of the stimulus, which is good news for the industry. The United States Department of Labor Bureau of Labor Statistics reported that in April, 110,000 jobs were lost in the construction industry, accounting for more than one-fifth of total job losses.

The industry currently has an 18.7 percent unemployment rate, more than double the national average. All five categories within the construction industry, including residential and nonresidential building and specialty trade contractors and heavy and civil engineering construction, have lost workers during the last month and the last year.