Fragile Monthly Gain In Jeopardy As State's Air Resources Board Delays Action on New Emissions Data Showing No Need for Off-Road Diesel Emissions Rules
California again suffered the largest year-over-year decline in construction jobs of any state in the 12 months ending in November, according to a new analysis of federal data released today by the Bureau of Labor Statistics. The analysis, conducted by the Associated General Contractors, found despite a gain of 1,200 construction jobs in the month of November (0.2 percent), the state shed 118,200 jobs (16 percent) compared to November 2008 and 328,000 jobs (35 percent) since the state's construction employment peaked in June 2006.
"As welcome as the small one-month upturn is, it is likely little comfort for the one out of three construction workers who lost their job statewide over the past 41 months," said Ken Simonson, chief economist for the association. "The state's construction industry remains extremely hard-hit and is unlikely to cope with new regulatory burdens and add new jobs at the same time."
Simonson added that it was too early to say if the November figures signal an end to the slump or another short-lived uptick similar to others the state has experienced since February 2006. He also noted that city-by-city construction figures also released by the Bureau today found construction employment declined in every one of the state's metropolitan areas compared to the previous year.
The association noted that new state data it released earlier this month found emissions from the state's off-road diesel equipment, 85 percent of which is used for construction, will be under the state's target levels for years to come. Despite the new data, state officials decided last week to defer revisiting the new off-road diesel rule, which would force contractors to invest billions of dollars to retrofit, repower or replace current construction equipment, until next April, weeks after the rule goes in effect.
Noting reports Governor Schwarzenegger has directed regulators to find a new approach for the state's on-road diesel emissions rules for trucks, association officials said the new data should compel state officials also rethink their off-road rule. "Sadly, state officials seem more intent on driving workers out of jobs that letting their decisions be driven by the data," said Mike Kennedy, the association's general counsel.
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