It’s not a general law of the business universe, but more often than not, the faster a sector of the economy grows, the faster it falls when economic conditions go south. Almost 2.4 million construction jobs vanished from 2007-2012, or 24 percent of what was the sixth-largest sector in the United States (and now is the eighth-largest), according to a report by Economic Modeling Specialists, Intl (EMSI).
Construction recovering for some but not all states
From 2001-2006, construction was the fastest-growing sector in the U.S., a feat not even the expanding health care sector, which was expanding at a rate of 14 percent, could match.
EMSI, noting the damage done to the construction industry and its slow climb back to normal, said, “More than manufacturing, more than real estate, the construction industry has had the most jobs swallowed up since the recession and weak recovery.”
Housing starts and building permits were up significantly in February compared to February 2012, said the employment data and economic analysis group. The severe job losses seen industry-wide have started to abate in many but hardly all states.
Eight states had at least 1,000 more construction jobs in 2012 than they did in 2001. The EMSI report identified the biggest gainer at a time of huge loss is Texas, which added an estimated 83,635 jobs, or 11 percent of the state’s total.
North Dakota takes the prize for the biggest percentage winner, experiencing a rise of 65 percent in construction since 2001 and 23 percent since 2010.
Driven by the oil and gas boom, North Dakota now has 35 percent more construction jobs per capita than the national average, after having 10 percent fewer jobs than the nation per capita in 2007.
Other states experiencing big recover are Hawaii, Oklahoma, Montana, and Washington, D.C.
While seven states—Wyoming, South Dakota, Alaska, Vermont, Nebraska, West Virginia and New Hampshire—are in the middle of the pack, the remainder of states including Ohio rank in the bottom dwellers.
The big state losers
According to construction industry job losses from 2001-12, Ohio was sixth [60,905] among the states to lose the most jobs.
California topped the list with 150, 689 jobs lost in this time period followed by Michigan, Illinois, Florida and Georgia, respectively.
Big sub-sector winners are utility system construction and building equipment contractors. Big sub-sector losers are building finishing contractors and residential building construction.
From 2012-2013, EMSI, which also produces comprehensive impact analysis for colleges and universities in the US and internationally, projects only six states will have greater than a 1 percent drop in construction employment. Michigan is expected to experience the biggest decline [-3%].
Overall, EMSI said “the construction industry is projected to hold steady—no major growth and no major decline.” While that may not sound great, the research group said it’s better than where the sector was a few years ago.
Subscribe!. It’s free. It’s pennies from heaven. Send news or tips to email@example.com. Join me on Google+, Pinterest or Twitter, or watch my YouTube videos.