Figure 1 shows manufacturing and construction employment on the same chart from 2005 to present. Both manufacturing and construction employment are showing growth, construction is growing at a faster rate on a percentage basis.
Legislation is also being put in place to encourage construction employment. For example, in exchange for the tax relief, the legislation required the developer to hire more than 300 D.C. residents for construction jobs to transform a former church into a 220-room hotel with three restaurants, a gym and a rooftop terrace. Adams Morgan community leaders and the developer hoped those jobs would be filled by low-income residents from the neighborhood and across the city.
The SA manufacturing sector employed 12.614M in May, up 31,000 or 0.25%, m/m and higher by 224,000 (1.8%), y/y. The two largest employment categories within manufacturing are motor vehicles and parts and transportation equipment. There were 963,500 employed in the manufacture of motor vehicles and parts, +6,000 change m/m or +0.65%. On a y/y basis, jobs in this sector were higher by 22,000 or +2.40%. The transportation equipment field employed 1.652M. Jobs in this sector were up by 8,000, +0.50% m/m and were stronger by 35,000, +2.2% y/y.
The construction sector employed a total of 7.173M, up 61,000, (0.86%), m/m and up by 264,000, (3.8%), y/y. Most construction workers are employed constructing buildings. In May, there were 1.582M workers constructing buildings, up 16,000, +1.0% m/m and up 54,000, +3.5% y/y. Heavy civil engineering was the next largest construction segment employing 1,007,300 in February, up 8,000, +0.75% m/m and higher by 20,000 or +2.0% y/y. Highway, streets and bridge construction, (not SA) employed 254,300, down 38,900, -13.3% m/m, but higher by 2,500 or +1.0% y/y. Industrial building construction, (not SA) employed 158,800, down 7,000, -4.5% m/m, but higher by 2,600, +1.7% y/y. Commercial building construction, (not SA) jobs declined by 14,000 m/m, -2.2% to 609,400 workers m/m. This was the second month in a row of significant job losses in this sector, a seasonal affect. On a y/y basis commercial construction jobs increased by 15,700, a +2.6% gain.
At Gerdau, we keep a keen eye on the employment numbers, especially manufacturing and construction since this is where most long product steel ends-up. In addition we know that growth in net job creation correlates to increased steel consumption.