Construction industry continues improving at slow rate, P.1
While the construction industry in the Philadelphia area continues to show signs that it is experiencing a recovery, it is doing so at a slow pace. During the month of October, the construction industry added 17,000 jobs, dropping the sector’s unemployment rate to 11.4 percent, according to new federal data.
Overall, construction demand from the private sector has driven employment in the industry up by 20,000 compared to 2011. Both residential and nonresidential construction added jobs in October, though more in the latter category. That is a positive sign, since employment has changed little in the last year, despite an increase in construction work in the last five months.
The decrease in the unemployment rate is probably, according to analysts, due to workers leaving the construction industry. This October, construction companies employed 5.53 million people, which is down significantly when compared to the 7.7 million people employed back in 2006.
One factor that was not accounted for was the destruction from Hurricane Sandy. That is because the Associated General Contractors don’t expect reconstruction and repair work from the storm to have a significant effect on employment in the construction industry in the coming months.
The construction industry, as those who are involved in it know, is highly risky and volatile. Navigating this industry successfully requires careful planning, good decisions, and expert advice. While there are multiple aspects to good decision-making in this industry, a particularly important one is engaging in smart contract negotiation. In our next post, we’ll take a closer look at this topic.
Source: Philadelphia Business Journal, “Construction industry slowly rebounding,” Natalie Kostelni, November 2, 2012