Alabama Construction News

JAN-MAR 2017

Alabama Construction News is the states only bimonthly magazine dedicated to the commercial construction industry.

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(in 2015) and fallen twice (in 2011 and 2013). This year the rate was unchanged from October. This year, 24 states posted a decline in their estimated NSA con- struction unemployment rates from October, 25 states posted an increase and one state (Massachusetts) had no change. Taking Alaska's October and November construction unemploy- ment rates out of the mix, all of the other states' rates have been under 10 percent since May, a record only previously observed from May 2000 through November 2000. TH E TOP FIVE STATE S The five states with the lowest estimated NSA construction unemployment rates in order from lowest rate to highest they were: Massachusetts, Utah, New Hampshire, Colorado, and Iowa. Four states—COLORADO, MASSACH US ETTS, N EW HAM PS H I R E AN D UTAH—were also among the top five in October. Massachusetts had the lowest rate among the states in November with a 2.6 percent estimated NSA construction unem- ployment rate, the state's lowest November rate on record going back to 2000 when the estimates begin. Utah, with a 2.8 percent construction unemployment rate, recorded its lowest November rate since 2007's 2.2 percent rate. New Hampshire also posted its lowest November rate on record with a 3.4 percent rate. Colorado slipped from the third lowest NSA estimated construction unem- ployment rate in October to fourth lowest in November with a 3.5 percent rate, but recorded its lowest November rate since 2005. Iowa had the fifth lowest rate in November, with a 3.6 percent rate, in spite of posting a 0.4 percent year-over-year increase, the fourth largest among the states. TH E BOTTOM FIVE STATE S The five states with the highest NSA construction unemployment rates in order from lowest to highest rates were: Pennsylvania, Illinois, Alabama, New Mexico, and Alaska. Four of these states—ALAS KA, ALABAMA, N EW M EXICO AN D PE N N SYLVAN IA—were also among the five states with the highest construction unemployment rates in October. As in September and October, Alaska had the highest estimated NSA construction unemployment rate in November (15.3 percent). Alaska's NSA rate has increased in November from October each year on record and this year followed the pattern with a 2.7 per- cent increase. New Mexico had the second highest construction unemployment rate in November at 9.5 percent, compared tothird highest rate in October. Alabama had the third highest rate in November, 9.2 percent, and the second largest year-over-year increase in its rate (up 0.8 percent). Illinois had the fourth highest rate in November, but the state's 9.1 percent rate was its lowest in November since 2007. Pennsylvania had the fifth highest estimated construction unemployment rate in November, 8.5 percent after posting the second highest rate, 8.8 percent, in October. Rhode Island, which had the fourth highest rate in October, had the sixth highest rate in November, 8 percent, its lowest November rate since 2007 when it was 7.2 percent. K EY D E C E M B E R A B I H I G H L I G HTS: Regional averages: Midwest (54.4), Northeast (54.0), South (53.8), West (48.8) Sector index breakdown: commercial / industrial (54.3), institutional (53.3), mixed practice (51.9), multi-family resi- dential (50.6) Project inquiries index: 57.2 Design contracts index: 51.2 The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers. Construction Unemployment Rates Improve in 38 States Year- Over-Year, ABC Says November not seasonally adjusted (NSA) construction unem- ployment rates were down in 38 states and the nation on a year- over-year basis, according to analysis released today by Associated Builders and Contractors (ABC). The rates for two states, Kansas and Texas, were unchanged from November 2015. The national NSA construction unemployment rate of 5.7 percent was down 0.5 percent from a year ago and unchanged from October, according to data from the Bureau of Labor Statistics (BLS). This was the lowest national NSA November construction unem- ployment rate on record, matching the 5.7 percent rate in November 2005 and November 2000. Meanwhile, BLS data showed that the industry employed 159,000 more people than in November 2015. "From October 2010 through November 2016, the NSA national construction unemployment rate has fallen from the previous year's reading every month," said Bernard M. Markstein, Ph.D., president and chief economist of Markstein Advisors, who con- ducted the analysis for ABC. "These industry-specific unemploy- ment rates are not seasonally adjusted, so it is best to look at the national and state rates on a year-over-year basis. The continued decline on a year-over-year basis in the unemployment rate nation- ally and in the majority of state rates is an indication of the health of the construction job market and its recovery from the deep reces- sion it experienced. The demand for skilled construction workers remains especially strong leading into 2017." The usual pattern for the change from October to November is an increase in the national NSA construction unemployment rate. Starting in 2000, when the BLS data for this series begins, through 2015, the November rate has risen 13 times, been unchanged once O U T L O O K & T R E N D S BUILDING ALABAMA 19 JAN-MAR 2017 AL CONSTRUCTION NEWS

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