October Construction Unemployment improved in 30 States from 2014.
Press Release Summary:
Year-over-year, not seasonally adjusted (NSA) construction unemployment rates for USA and 30 states were lower in October 2015. Year to date (YTD), construction added 159,000 seasonally adjusted (SA) domestic jobs. National NSA jobs increased 228,000 from October 2014 to October 2015, and SA construction spending in October increased 1% from September. YTD NSA construction spending, as of October, was up 10.7%, and NSA construction unemployment rate rose to 6.2%.
Original Press Release:
October Construction Unemployment Rates Improve in 30 States from 2014
Analysis by Bernard Markstein, Ph.D.
WASHINGTON, D.C. - October was another positive month for construction and construction unemployment rates around much of the country. Year-over-year, not seasonally adjusted (NSA) construction unemployment rates for the country and 30 states were lower in October this year. Year to date, construction has added 159,000 seasonally adjusted (SA) jobs throughout the country. Meanwhile, NSA jobs nationally increased by 228,000 from October 2014 to October 2015. Additionally, SA construction spending in October increased 1 percent from September according to the Census Bureau's Dec. 1 release. Year-to-date NSA construction spending as of October was up 10.7 percent.
The national October NSA construction unemployment rate has increased from the previous month in 10 of the previous 15 years. It must be remembered that NSA unemployment rates tend to have a seasonal pattern. This is the reason that year-over-year comparisons of the NSA rates are preferred over monthly rate comparisons. Consequently, monthly comparisons should be used with care.
This October, the national rate rose 0.7 percent to 6.2 percent. The estimated NSA construction unemployment rate increased for 38 states from September. The NSA construction unemployment rates for three states—Maryland, Rhode Island and Vermont—were unchanged from the previous month.Â
View states ranked by their construction unemployment rate.
View states ranked by their year-over-year improvement in construction employment.
The Top Five States
The five states with the lowest construction unemployment rates in order were:
1.   North Dakota
2.   South Dakota*
3.   Nebraska and Utah (tie)
5.   Colorado
* Unemployment rate is for construction, mining, and logging combined
The top four states—North Dakota, South Dakota, Nebraska and Utah—were among the top five in September. All of the top five states are in the same geographic area, although in two separate census regions (Mountain and West North Central). These states all benefit from agriculture plus energy and mineral extraction. All of these states have low overall unemployment rates. Thus some of those who lost their jobs in construction may have easily found jobs elsewhere in the area. Further, some may have left the area in search of work, keeping the construction unemployment rate down.
North Dakota maintained its number-one position for the fourth month in a row. Also, North Dakota's estimated construction unemployment rate of 1.8 percent was down 0.2% on a year-over-year basis. This follows four months of year-over-year increases.
South Dakota moved up to second place position with a construction unemployment rate of 2.6 percent from third place in September based on revised data (it was previously reported in second place). This was despite a 0.4 percent increase in its rate from October 2014.
Nebraska tied with Utah for third place with a 2.8 percent rate, up from fifth place in September based on revised data (previously reported in seventh place). Utah was up from fourth place in September.
Colorado jumped up to fifth lowest estimated construction unemployment rate in October with a 2.9 percent rate from eighth lowest in September. Colorado had the largest monthly drop in its rate, along with Idaho (down 0.7 percent).
The Bottom Five States
The five states with the highest construction unemployment rates (from lowest to highest) were:
46.   Arizona and West Virginia (tie)
48.   Mississippi
49.   Georgia
50.   Alaska
Two of the five states with the highest estimated construction unemployment rates in October—Georgia and West Virginia—were among the five highest in September. Rhode Island, which had the highest construction unemployment rate in August and September, was tied for ninth highest with four other states (California, Michigan, New Jersey and South Carolina) in October with a 7.8 percent rate. The state also tied with Maryland for the largest year-over-year drop in its construction unemployment rate (down 1.5 percent).
Alaska took over as the state with the highest estimated construction unemployment rate in October. The rise into double digits (10.1 percent) for Alaska's construction unemployment rate is the norm for that time of year for that state. Since 2002, Alaska's October rate has been in double digits every year except for last year. With the exception of the 2014 estimate, this October's rate is the state's lowest rate for the month since 2001.
Georgia had the second highest rate in October (8.6 percent). In September, it had the third highest based on revised data (previously reported as tied with Connecticut for second highest). Connecticut, which had the second highest rate in September, moved to sixth highest (8.1 percent), tied with Illinois.
Mississippi's 8.4 percent estimated construction unemployment rate was the third highest rate. In September, the state had the sixth highest rate based on revised data (previously reported as fifth highest), tied with Arizona. In October, Arizona was tied with West Virginia with the fourth highest construction unemployment rate of 8.2 percent. West Virginia also had the fourth highest unemployment rate in September. West Virginia tied with Alaska for the largest year-over-year increase in its rate—up 2.3 percent. West Virginia's year-over-year unemployment rate has increased for eight months in a row.
Read more on ABC's website.
Background
Associated Builders and Contractors (ABC) launched its state-by-state economic analysis earlier this year with the release of economist Bernard M. Markstein's analysis of construction's contribution to each state's gross domestic product (GDP). Unique to ABC, Markstein's state-level construction unemployment estimate and analysis of state-level construction job markets is released each month according to this schedule.
This analysis is produced in addition to ABC's existing national economic data and analysis. Background on how the data was derived and Markstein's methodology is available on ABC's website. Markstein is also available for an interview to provide further analysis.
Associated Builders and Contractors (ABC) is a national construction industry trade association representing nearly 21,000 chapter members. Founded on the merit shop philosophy, ABC and its 70 chapters help members develop people, win work and deliver that work safely, ethically, profitably and for the betterment of the communities in which ABC and its members work. Visit us at abc.org.
