September 2009

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Stimulus funds have limited effect on construction employment

According to the Associated General Contractors (AGC) of America, the federal economic stimulus plan appears to be having little influence on construction companies' ability to hire new employees.

Stephen E. Sandherr, AGC's chief executive officer, says 36 percent of construction companies with stimulus-funded work plan to hire new employees and points out that nearly the same percentage of firms without stimulus-funded work plan to hire during the same period. Additionally, 36 percent of construction companies with stimulus-funded work plan to purchase new equipment and supplies; 43 percent of construction companies without stimulus-funded work plan to make similar purchases during the same time period.

Sandherr claims one reason the stimulus plan is having a limited effect on construction hiring and purchasing patterns is that outside of the transportation sector, few of the stimulus plan's authorized construction dollars have resulted...

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