US & CA Construction Employment


US and CA Construction Employment Cumulative change, Feb 2020-Oct 2022, seasonally adjusted


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Percent change Feb 2020- Oct 2022


 Source: BLS


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  Copyright 2022 The Associated General Contractors of America, Inc.


While California is not likely to return to the average population increase of 0.6% per year that it recorded last decade, any improvement over the 2021 exodus will help add to demand for construction and, potentially, the tight supply of construction workers.


Federal Legislation Boosts Construction On the plus side, three pieces of federal legislation will provide a boost to con- struction across the country, including parts of California. Te most expansive is the Infrastructure Investment and Jobs Act. While the bill became law in November 2021, actual contract awards will only start appearing in significant amounts in 2023. But they will add to demand for a wide range of projects, including highways, transit, other trans- portation facilities, broadband, water, sewer, and more. Te Inflation Reduction Act, enacted


in August, provides tax credits and other incentives to a plethora of alternative energy production, battery storage and charging, and carbon capture projects. However, numerous regulations need to be written, along with other clarifications, before most investment will proceed. Te third bill, the Chips and Science


Act, has already triggered several an- nouncements of new construction, no- tably for semiconductor chip fabrication plants or “fabs.” So far, none of the starts


is in California. But the state’s high-tech industries and other manufacturers will benefit from a more plentiful and U.S.- based supply of chips.


Still Tight Supply of Workers California lost roughly 260,000 residents or 0.7% of its population between July 2020 and July 2021 as births and net immigration slowed while deaths and net migration to other states climbed. While the state is not likely to return to the average population increase of 0.6% per year that it recorded last decade, any improvement over the 2021 exodus will help add to demand for construction and, potentially, the tight supply of con- struction workers. In short, contractors cannot expect


growth across all geographic markets or structure types in 2023. But there will be numerous opportunities.


Ken Simonson


CALIFORNIA CONSTRUCTOR JANUARY/FEBRUARY 2023


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