Report: January Jobs Picture is Brighter

Things are starting to look a bit brighter for jobs inside the construction industry. News articles report the highest construction worker employment rates since July 2009.

According to the U.S. Labor Dept.’s Bureau of Labor Statistics, which released its monthly unemployment report Feb. 7, despite the particularly severe weather in much of the nation, construction employment totaled 5.92 million in January, an increase of 48,000 from the previous month. The gains in the construction in January more than offset a decline of 22,000 in December.

Jobs gains occurred in both residential and nonresidential building, which added more than 13,000 and 8,000 respectively; and in non-residential specialty trade construction, which added more than 13,000 jobs. Heavy and civil engineering construction added 10,0000 jobs.

Overall, the number of unemployed persons, at 10.2 million, and the unemployment rate, at 6.6% changed little in January. Since October, the jobless rate has decreased by 0.6 percentage point….More at Construction Adds 48000 Jobs in January – Engineering News Record (subscription)

What can a report like this tell you–other than that construction workers are more likely to gain a paycheck this month? If you’re a company owner or officer and thinking about building or expanding into new facilities, it can tell you a lot.

More business owners are taking more risks and starting construction projects.
The economy may be improving, so any project you are planning may be better supported by imminent business growth.
Businesses may be more willing to spend money–which could be good for your company’s projected revenues.

But there’s another point you may not have thought about. For example, does a more vigorous construction picture mean you’ll have a harder time finding good vendors and contractors? Possibly so. And does it also mean you might have to pay more for their services. Again, possibly so.

If the January job numbers are more than just a temporary spike, then business owners planning big projects should looking at availability of resources. Will the contractors, architects, engineers and other expert professionals you need be available when you’re ready to begin. Or equally important, will demand drive up their costs. A good project leader can help you plan to avoid this obstacle and negotiate savings up-front as well.