Construction unemployment rates improve in 33 states - by Frederick Mason III

December 09, 2016 - Rhode Island
Frederick Mason III, ABC Frederick Mason III, ABC

October not seasonally adjusted (NSA) construction unemployment rates were down in 33 states and the nation on a year-over-year basis, according to analysis released by Associated Builders and Contractors (ABC). The national NSA construction unemployment rate of 5.7% was down 0.5% from a year ago, according to data from the Bureau of Labor Statistics (BLS).

This was the lowest national October construction unemployment rate since 2006, when it was 4.5%. BLS data also reported that the industry employed 175,000 more people than in October 2015.

Fifteen states posted a decline in their estimated construction unemployment rates from September. Three states – Michigan, Ohio and Utah – had unchanged rates month-over-month. North Dakota’s rate was unchanged from October 2015.

The Top Five States

The states with the lowest estimated NSA construction unemployment rates in order from lowest rate to highest they were:

1. North Dakota

2. Massachusetts

3. Colorado

4. Utah

5. New Hampshire and South Dakota (tied)

Four states – Colorado, Mass., North Dakota and South Dakota – were also among the top five in September. North Dakota had the lowest rate among the states in October at 2.4%. Construction employment in the state has been trending down since it peaked in October 2014, but it remains higher than it was prior to 2012. Mass., with a 2.5% construction unemployment rate, moved up to the second lowest rate and had both the fourth largest year-over-year decrease (down 2%) and the fourth largest monthly decline (down 0.8%). Colorado dropped from the lowest rate in September to third lowest rate in October with a 3.1% rate, up from 2.4% in September and 2.9% in October 2015. Utah’s estimated NSA construction unemployment rate held steady at 3.4%, moving it from sixth lowest in September to fourth lowest in October. N.H. and South Dakota tied for fifth lowest rate in October, both with a 3.6% rate, a 0.4% drop from September for N.H. and a 0.7% month-over-month rise for South Dakota.

While only good for the 20th lowest rate, Nevada’s 3.4% year-over-year plunge in its construction unemployment rate to 4.9% was the largest decrease among the states and marked the state’s lowest October rate since October 2007 when it also stood at 4.9%.

The Bottom Five States

The states with the highest NSA construction unemployment rates in order from lowest to highest rates were:

48. Illinois and Rhode Island (tie)

49. New Mexico and Pennsylvania (tie)

50. Alaska

Four of these states – Alaska, New Mexico, Pennsylvania and R.I. – were also among the five states with the highest construction unemployment rates in September.

As in September, Alaska had the highest estimated NSA construction unemployment rate in October (13%), since these are NSA construction unemployment rates. Alaska’s ranking is not surprising and the state also had the third largest year-over-year rate decrease, down 2.7%. New Mexico and Penn. had the second highest construction unemployment rate in October, a year-over-year increase of 0.4% for New Mexico and 1% – the second largest of any state – for Pennsylvania. Illinois and R.I. had the fourth highest rate in October, 8.7%. Illinois had the second largest monthly increase among the states, up 1.5% while this was Rhode Island’s lowest October rate since 2007, when it was 7%.

Frederick Mason III is the president of ABC Rhode Island.

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