Stimulus Saving, Not Creating Construction Jobs
Washington, DC, July 31, 2009--The federal government's $787 billion stimulus plan is having little effect on job creation within the general-construction industry but appears to be saving jobs, according to the Associated General Contractors of America.
Construction spending was "disappointingly slow" five months into the recovery program, with firms working on stimulus-funded construction projects hiring at no greater rates than those without such work, the group said.
The findings are based on a survey of almost 1,000 construction companies.
While few new jobs were reported, 60 percent of firms surveyed by the AGC said they had saved jobs because of the stimulus package, which the AGC estimates is worth $135 billion in construction contracts.
AGC chief executive Stephen E. Sandherr said that the stimulus act is having an impact but not delivering on its full potential. "With construction unemployment at almost double the national rate, it is disappointing to see so many stimulus programs getting off to such a slow start," he said.
Related Topics:Associated General Contractors of America