Industry Trends: More hiring on the horizon?

In late January, several news sources began to report positive signs for an improved employment outlook. A Bloomberg survey showed that 42% of companies plan to hire in the next 6 months and industry economists are the most optimistic about the jobs outlook than they have been in 12 years. 

The Associated General Contractors of America released its 2011 Construction Hiring and Business Outlook report which also had some good news to share. According to the results of this industry-wide survey, more construction companies are expected to hire in 2011 than make layoffs. This positive news rippled through a variety of media outlets within a few days of its release.

The AGC and Navigant survey found that 27% of firms plan to add staff this year compared to 20% who plan layoffs. This is in stark contrast to 2010 when 55% planned layoffs. The report admits that there is still uncertainty about the labor market but “the fact that more firms plan to hire than fire even in an environment of relatively weak demand may indicate that contractors suspect the worst is over and are taking tentative steps to prepare for a turnaround.”

The AGC Outlook contains state-specific data which was also picked up in local media. 

• The Houston Business Journal covered the survey results and reported that 28% of Texas construction firms plan to hire in 2011.
• The Minnesota Post was less upbeat in its report about Minnesota’s construction outlook. Though 25% of construction firms in Minnesota plan to hire, only an average of 4 employees were expected to join each company.
• The North Carolina Construction News also reported cautious optimism. In North Carolina, 28% of firms plan to hire 24 employees each; 25% plan to layoff an average of 9 each; and 47% of firms see no change.

In terms of actual numbers, 2011 is not off to a great start. According to analysis of new federal employment data by AGC, the construction unemployment rate jumped to 22.5 percent in January 2011. These numbers underscore the cautious optimism shown by construction firms around the country.

“This won’t be an easy year for most firms, but it will be better than last year,” Stephen Sandherr, the AGC’s CEO, said in a statement and quoted by The Houston Business Journal. “If current trends continue, this industry will be in a much better position 12 months from now than it is today.”

What are you expecting this year? Check out your state’s hiring and business outlook to find out more about trends in your area.

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