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Healthy Housing Industry Spurs Job Growth New Jersey Led Nation in Construction-Job Loss Last Year
Construction Job Growth Contributes to Overall Market Recovery Featured Jobs
 
Healthy Housing Industry Spurs Job Growth

The health of housing is key for the overall state of the U.S. economy and housing stands poised to serve as an engine of job growth with the right policies in place, according to the National Association of Home Builders (NAHB). Home building and remodeling have generated 274,000 jobs over the past 2.5 years.

Employment from new home construction and remodeling has a wide ripple effect. About half the jobs created by building new homes are in construction. They include framers, electricians, plumbers and carpenters. Other jobs are spread over other sectors of the economy, including manufacturing, retail, wholesale and business services. NAHB analysis of the broad impact of new construction shows that building 1,000 average single-family homes generates: 2,970 full-time jobs; $162 million in wages; $118 million in business income; and $111 million in taxes and revenue for state, local and federal governments.
Construction Job Growth Contributes to Overall Market Recovery

Job creation and construction spending are on the rise in the home building industry, government sources report. Though modest compared to their respective peaks, industry watchers agree the increases demonstrate market recovery continues its slow march forward. A surge in housing construction contributed to the home building sector adding more than 100,000 jobs to the economy last year, alone, according to the U.S. Bureau of Labor Statistics. Since the point of peak decline in homebuilding employment, when total job loss for the industry stood at 1.466 million, the residential construction sector has gained 243,000 positions. From September 2013 to February 2014, the homebuilding and remodeling industry added jobs at the pace of 8,000 jobs per month.

Combined with declining layoffs, the uptick in job openings over the past several years suggests more (albeit modest) construction hiring in the near term, provided home builders can find workers with the right skills. According to labor department statistics, the number of unfilled construction sector jobs increased 38 percent from January 2013 to the first of this year, landing at 156,000 positions, the second highest count of open jobs in the sector since May 2008. The number of openings represents both an opportunity and a challenge for home builders.
New Jersey Led Nation in Construction-Job Loss Last Year

Despite hopes that rebuilding after Superstorm Sandy would boost New Jersey's construction industry, that sector shed more jobs in the past 12 months here than in any other state in the nation. From March 2013 through March this year, New Jersey lost 4,600 construction jobs, a 3.4 percent drop year-over-year, according to an analysis of federal Bureau of Labor Statistics data by the Associated General Contractors of America, a trade group. New Jersey construction employment sank to 131,500 from 136,100 during that 12-month period, the trade group said.

Economic experts blamed the Northeast's particularly severe winter with putting a damper on construction in New Jersey, as well as the red tape and bureaucratic delays that have thwarted the reconstruction of homes and businesses damaged by Sandy. In addition, the state's office market is depressed, capping that kind of development.
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