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Stimulus-Funded Construction Projects Create New Jobs Nationwide

Post Time:May 09,2009Classify:Industry NewsView:345

Construction companies nationwide are reporting that the stimulus bill passed last February is making it possible to hire new workers, according to information gathered by the Associated General Contractors of America (AGC).

"Early reports indicate that the infrastructure piece of stimulus is beginning to do exactly what was intended, put construction workers back on the job," said Ken Simonson, chief economist for AGC. "As today's employment report shows, however, construction is still one of the hardest-hit industries in terms of job losses."

Simonson said that as more and more stimulus-funded projects are awarded, a growing number of member companies are reporting adding new jobs or rehiring laid off employees.

Simonson also noted that many contractors were canceling planned layoffs because of new stimulus-funded work. Noting that an estimated 85 percent of construction companies said they would cancel layoffs or add new employees with the stimulus, he said stimulus funds were keeping a bad business environment from getting substantially worse for many firms.

Simonson said that the latest U.S. Department of Labor employment report for April shows that 110,000 seasonally adjusted jobs were lost in construction, accounting for more than one-fifth of total job losses. He added that the industry's 18.7-percent unemployment rate is more than double the national average. Sadly, all five construction categories-residential and nonresidential building and specialty trade contractors, and heavy and civil engineering construction-shed workers last month and for the past 12-month period, Simonson noted.

"It's tempting to imagine how much worse today's jobs report would have been without the stimulus," Simonson said.

Source: USGNN.comAuthor: shangyi

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