Budget impasse leaves construction workers high and dry

The latest figures compiled by the Associated General Contractors of America show Minnesota saw the steepest decline in construction jobs of any state over the last year.

Construction employment in Minnesota dropped 14.1 percent – a loss of 12,900 jobs – since one year ago, the contractors’ association reported. Nevada was second, with an 11.6 percent decline, followed by Wisconsin and Colorado.

Building Trades unions in Minnesota, who represent about 20 percent of the state’s construction workforce, said hundreds of their members are “on the bench” awaiting work.

In contrast, 19 states and the District of Columbia experienced job growth in construction. AGC officials said the figures reflect an uneven and unsteady construction industry recovery that could be undermined by looming cost increases and public sector funding cuts.

Building Trades members demonstrate last week at the state Capitol, one of several efforts to convince lawmakers to create jobs. Photo by Michael Moore, St. Paul Union Advocate

Building Trades unions said public investment is needed to spur job growth and address neglected infrastructure needs. The unions support Governor Mark Dayton’s $1 billion bonding proposal to fund construction for schools, utilities and transportation while creating 28,000 jobs.

The Republican-controlled Legislature did not act on Dayton’s plan. In addition, a lack of a budget deal makes a state government shutdown possible, threatening current highway construction projects and the people they employ.

Officials with the Associated General Contractors predict construction employment will remain stagnant through much of 2011 as federal, state and local governments cut investments in infrastructure and other construction projects. They said that expected increases in multifamily, manufacturing and power construction would help offset the public sector declines, but might not be enough to lead to significant increases in construction employment.

“Construction will keep suffering double-digit unemployment rates as long as federal officials continue to cut infrastructure maintenance and upkeep instead of addressing out-of-control entitlement spending,” said Stephen Sandherr, the association’s chief executive officer. “The lesson here is you can’t neglect your way to greater economic prosperity.”

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