U.S. Economy Sees 151,000 New Jobs as Construction Starts Boom in October

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Researched by Industrial Info Resources (Sugar Land, Texas)--The summer of 2010 was a difficult one for the economy. Despite Wall Street making significant gains in the last few months, the monthly jobs news has not been very positive and construction starts have been sluggish. However, things appeared to turn around as fall went into full swing in October, with 151,000 jobs created in the U.S., the first increase since May. Construction starts took off as activities began on a significant number of capital and maintenance projects.

Almost $20 billion worth of projects began construction in the U.S. in October. This was double the amount of construction starts for September, and a significant increase over the months of August and July as well. With October being one of the last months for companies to get construction activities going before the first heavy winter storms, it is not surprising to see a boost in spending during the month; however, analysts were not expecting spending to double the totals from only a month before.

This boom in construction starts helped boost jobs creation for the month, and although the national unemployment rate did not change for the third month in a row, remaining at 9.6%, the increase in spending could lead to more job additions in the near future. The construction sector created 5,000 jobs as a result of this boost in construction spending. Overall, the manufacturing sector lost 7,000 jobs during the month, but the mining and logging sector, as well as the motor vehicles and parts sector, both saw increases in jobs totals for the month.

The bulk of the spending in October can be attributed to the Power Industry, which accounted for nearly half of the monthly total, with $9.6 billion in the form of almost 150 capital and maintenance projects that began construction. The Industrial Manufacturing Industry, the second-highest spender for the month, contributed $2 billion to the total in the form of 43 projects, while the Metals and Minerals Industry added $1.9 billion (45 projects), the Alternative Fuels Industry contributed $1.6 billion (7 projects) and the Pharmaceuticals and Biotech Industry contributed $1.3 billion (24 projects).

The West Coast region of the country was the recipient of the most project work for October, as 58 capital and maintenance projects worth an estimated $4.4 billion began construction activities in the states of Oregon, Washington and California. The Rocky Mountain region, with 47 projects worth $4.2 billion, was a close second in total project investments for the month, while the Southwest region saw 105 projects worth $3 billion. The Great Lakes region, a region that has taken a beating during the recession, saw 100 projects worth $2.6 billion begin construction, and the Midwest region contributed 47 projects worth $2.1 billion.

The fact that jobs are finally being created is good for the country as a whole. When you add in a significant increase in industrial construction spending, the news is even better. However, as the heart of the winter months approaches rapidly, it is likely that spending will decline slightly as companies find it more difficult to get construction projects going in the parts of the country where winter weather is prohibitive. Hopefully, spending can remain solid during these months and jobs will continue to be created as the overall economic situation improves.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.