Construction jobs on the rise

The construction industry in both Ontario and the U.S. is helping to fuel increases in employment figures.

The number of construction jobs in Ontario picked up in April as employment figures reflected a 1.7 per cent rise in growth over the last 12 months.

Statistics Canada reports there were 31,000 more workers in the construction industry in Ontario compared to 12 months ago, bringing the total in employment to an additional 108,000 new jobs.

Meantime, in the U.S., construction employment in April is on the rise.

“Construction employment set a record for the 15th straight month in April,” Ken Simonson, chief economist of The Associated General Contractors of America (AGC). Simonson was commenting on the monthly employment report from the Bureau of Labor Statistics (BLS).

That report showed seasonally adjusted payroll employment in construction reached 7.51 million in April, a gain of 267,000, or 3.7 per cent, from a year ago.

“The construction industry has added jobs more than twice as fast as the 1.5 per cent growth rate for total non-farm payroll employment,” Simonson commented. “Furthermore, all five BLS construction employment categories are up by more than 1.5 per cent.”

The BLS data show that seasonally adjusted non-residential building contractors added 4,000 and 41,000, or 5.5 per cent. Non-residential specialty contractors added 5,000 and 43,000, or 1.8 per cent. Heavy and civil engineering employment fell by 200 for the month, but was up 52,000, or 5.5 per cent, since April 2005.

“Non-residential activity seems to be gaining momentum,” Simonson said.

The Census Bureau reported private non-residential construction spending was 10.6 per cent higher in the first quarter of 2006 than the first three months of 2005, while private residential and public construction each grew 8.8 per cent.

“But construction faces much higher materials cost increases than the economy as a whole, and availability of some materials may be a problem,” Simonson concluded. “Contractors in the past two weeks have reported to AGC that cement had run out in Spokane, Wash. and Little Rock, Ark., and that fly ash was unobtainable in Oregon.

“The Institute for Supply Management said its non-manufacturing members reported price increases in April for asphalt, construction labour, copper, diesel fuel, freight and fuel surcharges, insulation, roofing materials, steel, tires, wallboard and wire.

“All of the commodities reported in short supply had a construction connection: asphalt, copper, roofing materials, skilled labour, steel, tires, valves, and wallboard.”

DCN NEWS SERVICES