Construction spending increases in U.S., aiding construction staffing

12.19.2011


Construction spending increases in U.S., aiding construction staffing
Construction spending increases in U.S., aiding construction staffing

For the third consecutive month, U.S. builders spent more on shopping centers, homes and offices in October, a positive sign that construction staffing could be on the rise across the country.

Construction spending increased 0.8 percent in October to a seasonally adjusted $798.5 billion, according to the Commerce Department. Still, analysts say the industry is suffering from the lingering effects of the housing collapse, with healthy levels not expected for at least a few more years.

At this stage, any positive news is welcome for the industry, however, and the Commerce Department found residential construction climbed 3.4 percent in October. Gains were seen particularly in single-family construction and residential projects, according to The Associated Press.

Non-residential construction increased 1.3 percent to $279.6 billion in the month, a reflection of more office buildings and shopping centers being built, the Commerce Department reported.

Another positive element from the report was that applications for building permits surged 11 percent in October, a strong indication for future months, the AP said. Permits to construct apartments led the way, climbing 30 percent to their highest level in 30 years.

The construction of new homes has a significant impact on the overall economy, as the National Association of Home Builders estimates each home built creates three jobs per year on average and brings in approximately $90,000 in taxes, reported the AP.

Across the country, construction staffing has experienced gains in spurts, with a number of new projects breaking ground recently. In South Florida, for instance, the construction of a new resort and residence on Sunny Isles Beach and other projects in Miami are expected to pave the way for the creation of 1,500 new construction jobs.

According to NBC Miami, the building of a luxury 41-story tower will reportedly lead to the addition of 700 workers, with the remainder of the positions coming to Miami through the construction of new condos.

Michael Goldstein, an official with the company working on the resort in Sunny Isles, told the news source the employment created through the construction will be seen on a number of levels.

"That filters down not just from the people that are working here but also those supplying us with the materials and the fabrics and the appliances. We are excited now to put some people back to work," Goldstein explained.