Tag Archives: private sector

construction industry

Construction Industry Loses 7,000 Jobs In March

The construction industry lost 7,000 jobs in March, inching the unemployment rate up to 17.2 percent from 17.1 percent in February, according to the April 6 Department of Labor employment report. Year over year, construction industry unemployment is down compared to the March 2011 rate of 20 percent. The construction industry added 55,000 jobs over the past 12 months.

The nonresidential construction sector lost 6,000 jobs for the month, but year over year has added 7,000 jobs, or 1.1 percent, bringing the total number of jobs to 659,400. Residential construction lost 5,000 jobs for the month and has added 3,000 jobs during the past 12 months, or 0.4 percent, to reach 569,000 jobs.

Nonresidential specialty trade contractors shed 5,000 jobs in March, while residential specialty trade contractors added 5,000 jobs and heavy and civil engineering construction employment saw a gain of 4,000 jobs. Year over year, nonresidential specialty trade contractors have lost 4,000 jobs, or 0.2 percent; residential specialty trade contractor employment grew by 29,000 jobs, or 2 percent; and heavy and civil engineering construction employment increased by 20,000 jobs, or 2.4 percent.

Across all industries, the nation added 120,000 jobs in March. The private sector expanded by 121,000 jobs and the public sector shrank by 1,000 jobs. On a yearly basis, the nation has added 1,899,000 jobs, or 1.5 percent. The national unemployment rate stood at 8.2 percent in March, down from 8.3 percent in February, with the labor force shrinking by 164,000 people.

“Today’s employment report was disappointing, particularly for the construction industry,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “The first quarter of 2012 will be judged as a step backward for the industry as construction spending levels stagnated and employment momentum disappeared.

“A certain level of weakness was anticipated due to the economic slowdown during the spring and summer of last year that caused many projects to be put on hold and resulted in diminished construction momentum,” Basu said. “In addition, ABC’s Construction Backlog Indicator, a predictor of construction activity, dipped during last year’s fourth quarter, setting the stage for the declines in construction employment now being observed.

“This employment report differed from the prior three months because employment growth was disappointing for the broader economy as well,” Basu said. “The consensus coming into today’s release was the nation would have added approximately 200,000 jobs in March, which did not happen.

“Some attribute the disappointing March report to abnormally warm weather across the nation, which caused February’s employment to be artificially high. However, one month does not make a trend and other data remain upbeat, including consumer activity and overall economic momentum. Economists and others will be looking for signs of improvement in labor market dynamics in April,” Basu said.

arizona flag 2011

Legislation to help re-establish Arizona as an economic leader

Gov. Jan Brewer today called the Legislature into Special Session for the consideration of a comprehensive plan to put Arizona back to work. Known as the Arizona Competitiveness Package, the proposal includes a mix of targeted business incentives and broad tax reforms designed to rev the Arizona economy.

“The Competitiveness Package will make Arizona a magnet for business expansion, relocation, capital formation and investment,” Brewer said. “This is our roadmap for future economic growth.” Improving Arizona’s competitiveness in the global marketplace is the first of the governor’s Four Cornerstones of Reform that she unveiled earlier this year. The centerpiece of the plan is her creation of an Arizona Commerce Authority.

Replacing the Arizona Commerce Department and its hodge-podge of more than 50 mandates and responsibilities, the Commerce Authority will have a single focus: the retention and recruitment of quality jobs for Arizona. The Commerce Authority will be overseen by a public-private board comprised of Arizona leaders in business and policy.

Designed to be nimble and flexible in responding to economic opportunities, the board will be armed with a $25 million deal-closing fund to help land some of the nation’s most highly-sought corporations and business ventures for Arizona. No dollars will be awarded prior to performance, and “claw-back provisions” and an independent, 3rd-party economic analysis will ensure that companies awarded public funds meet their promised obligations.

“This package of tax reforms and targeted investments will give Arizona the tools it needs to compete for economic development on the global stage,” said Don Cardon, president and CEO of the Arizona Commerce Authority. “Arizona can’t afford to wait for economic growth. We’re going to aggressively pursue quality jobs and stable industries that will become the bedrock of this state’s economic future.”

The Arizona Competitiveness Package is focused on both urban and rural job creation, and is intended to make this state a destination for business growth and development. Specific aspects of the plan include:

• The creation of a Quality Jobs Program, with corporate tax credits of up to $9,000 for each qualifying new job. ($3,000 per job, per year, with a 400-job cap).

• An increase in the electable state corporate income-tax sales factor to 100 percent, up from the current 80 percent. This will encourage firms to establish headquarters and manufacturing centers in Arizona.

• Re-authorization of the Arizona Job Training Program, providing job-specific, reimbursable grants to train employees for new careers.

• A four-year, phased-in reduction of the state’s corporate income tax to 4.9 percent, beginning in January 2014. This will give Arizona the nation’s fifth most competitive corporate income-tax rate.

• A 10 percent increase in the state’s Research & Development tax credit, encouraging further collaboration between Arizona’s research universities and the private sector.

• A 5 percent acceleration of the depreciation schedule for business personal property, spurring purchases of new equipment and other capital investments.

The Arizona Competitiveness Package is consistent with Brewer’s long-held call for corporate tax relief that would be phased-in after Proposition 100 expires and the state’s budget is on firmer footing.

“The development of a stable and growing economy is the key to Arizona’s future,” she said. “It will provide good jobs for our citizens and revenue for the state programs and services everyone enjoys. I urge legislators to act quickly in enacting these reforms and furthering Arizona’s economic recovery.”

Unemployment

Arizona’s Unemployment Rate Drops in November

The state’s unemployment rate dropped one-tenth of a percent to 9.4 percent in November, as the economy added 12,800 jobs. The Arizona Commerce Authority (ACA) reports today that the private sector generated 9,300 jobs, while government added 3,500. Traditional holiday hiring boosted the November job gains.



Nov. ’10Oct. ’10Nov. ’09
United States9.8%9.6%10%
Arizona9.4%9.5%9.3%



This is the fourth consecutive month of over-the-year gains in total nonfarm employment. The state’s 1 percent year-over-year gain in November was higher than the nation’s gain of 0.6 percent. Arizona’s 1 percent gain totals about 24,900 jobs added since the previous November.

“Overall, Arizona’s employment situation continues to improve,” according to the ACA employment report.



Nov. ’10
Oct. ’10
Nov. ’09
Overall 2,4482,435.22,423.1
Monthly Change0.5%1.3%0.6%
Annual Change1%1.1%-6.5%



Over the month, six out of the state’s 11 major sectors saw job gains. The sector that had the most gains for the month was trade, transportation and utilities, with 9,900, mostly due to the 8,700 jobs gained in the retail sector.

Gains were reported in: professional and business services (2,300); educational and health services (1,700); government (3,500); manufacturing (600); and information (400).

Losses were reported in: construction (-3,000); financial activities (-900); leisure and hospitality (-900); other services (-700); and natural resources and mining (-100).

Construction lost the most jobs of any sector in November, but it still is recording net job gains for 2010.

The unemployment rates climbed in almost all of the state’s largest metro areas.


Nov. ’10
Oct. ’10
Nov. ’09
Phoenix Metro8.9%8.4%8.7%
Tucson Metro8.8%8.3%8.5%
Yuma Metro26.8%25.7%22.4%
Flagstaff Metro8.1%7.8%8.1%
Prescott Metro10.2%9.7%9.8%
LHC-Kingman Metro10.9%10.9%9.8%
Arizona Commerce Authority

Cardon Named CEO, President Of State’s New Commerce Authority

Don Cardon today was officially named CEO and President of the newly formed Arizona Commerce Authority by Gov. Jan Brewer at the ACA board meeting at the Arizona Capitol.

Brewer named Cardon Director of the Arizona Department of Commerce in May 2009. On June 29, 2010, Brewer issued an Executive Order establishing the ACA and transitioning out the Department of Commerce. Cardon was on the committee to select the new head of the ACA. The committee looked no further than its backyard.

The 35-member, private sector ACA will work to align diverse assets and opportunities within the state to compete economically in both domestic and international markets to create high-quality jobs for the Arizona residents.

Cardon’s experience as an economic developer is vast. He worked in a rural Washington state community attracting international companies engaged in high-tech manufacturing, electronics and energy; he is a former entrepreneur, serving as President and CEO of Cardon Development Group, creating low-income housing tax credit projects throughout Arizona.

Cardon also helped initiate the formation of Phoenix Future, assembling business, political and financial leaders to create CityScape, a mixed-use development in downtown Phoenix. Cardon is experienced in financial planning, zoning activities, marketing and partnership development.