ARRA Construction Jobs Pegged at 262,000
An estimated 262,000 construction-sector jobs have been produced or saved by American Recovery and Reinvestment Act funds through the end of 2009, the White House Council of Economic Advisers says in its second quarterly report on the stimulus measure’s impact. That total is nearly double the 133,000 ARRA construction jobs CEA estimated in its first ARRA snapshot, issued on Sept. 10.
In its new report, released on Jan. 13, CEA notes that its numbers “are only estimates,” but those figures are in line with job counts reported by states and localities to the House Transportation and Infrastructure Committee. The panel says ARRA-funded highway and transit projects alone created or preserved more than 250,000 “direct, on-project jobs” as of Nov. 30. Most of the jobs probably are in construction. They stem from 8,587 highway and transit projects under construction and worth $19.7 billion.
CEA says ARRA has lifted overall employment by 1.5 million to 2 million as of 2009’s fourth quarter, compared with the projected level if the bill had not been enacted.
CEA also reported that $263.3 billion of ARRA’s total $787 billion was spent as of Dec. 31, including $164.2 billion in outlays and $99.1 billion in tax breaks. Another $149.7 billion in ARRA funds have been obligated for specific projects or programs but have not yet turned into outlays.
Despite ARRA’s impact, construction’s unemployment rate rose in December to 22.7%, the highest level since at least 2000. Construction economists say the industry’s ARRA job gains have been outstripped by losses in the non-residential market and non-federal public works.
| SECTOR | JOBS ADDED/PRESERVED | |
|---|---|---|
| August 2009 | December 2009 | |
| Professional and Business Services | 256,000 | 510,000 |
| Trade, Transportation, Utilities | 232,000 | 459,000 |
| Manufacturing | 179,000 | 354,000 |
| Construction | 133,000 | 262,000 |
| Leisure and Hospitality | 83,000 | 165,000 |
| Information | 51,000 | 101,000 |
| Other Sectors* | 107,000 | 218,000 |
| TOTAL | 1,041,00 | 2,068,000** |
| *MINING/LOGGING, FINANCE, EDUCATION/HEALTH, GOVERNMENT, OTHER SERVICES. ** ITEMS DO NOT ADD TO TOTAL, DUE TO ROUNDING. | ||
| SOURCES: BUREAU OF LABOR STATISTICS; CEA CALCULATIONSA | ||
CEA Chairwoman Christina Romer says ARRA “has had a fundamental impact with an economy that was in free fall in early 2009.” But Republicans are continuing to criticize the program. The House Oversight and Government Reform Committee’s top GOP member, Darrell Issa (Calif.), blasted CEA’s report for “self-serving and deceptive numbers.”
In its report, CEA acknowledges, “The economy is obviously still far from healthy.” Romer says, “I absolutely do feel that we need further targeted action to help jump-start job creation.” President Obama backs more spending for public-works and energy-efficiency projects, plus help for small businesses. The House passed a $154-billion jobs bill on Dec. 16, including $47 billion for infrastructure. Senate Democrats also are developing a jobs proposal.
