Despite the addition of 28,000 jobs in January, the nation's construction industry unemployment rate shot up to 16.1 percent. In an employment report released by the U.S. Department of Labor on February 1st, the January rate marks an increase from 13.5 percent in December 2012, but a decrease from 17.7 percent the same time last year.
The labor report says that year over year, construction employment has risen by 102,000 jobs, or 1.8 percent.
This seems to be consistent locally, as the Guam Department of Labor reported similarly in September that the island's construction industry saw an increase of 260 jobs from June's number of 5,880 to September's number of 6,140. Guam's Unemployment Rate is 10.9 percent.
Overall, the nation added 157,000 jobs as the private sector expanded by 166,000 jobs and the public sector shrunk by 9,000 jobs. According to the Bureau of Labor Statistics' household survey, the national unemployment rate increased to 7.9 percent in January, up from 7.8 percent in December.
"For a second consecutive month, the nation's construction industry added jobs," Associated Builders and Contractors Chief Economist Anirban Basu told Metal Construction News. "However, there are at least two reasons to question whether this improved performance is indicative of a broadening construction industry recovery or an example of the statistics being impacted by temporary phenomena.
Basu attributes recent construction employment fluctuations to the recent challenges with the winter weather season and Hurricane Sandy Recovery efforts. Also, Basu says gross domestic product information is showing that economic expansion is not happening as quickly as have some experts had predicted.
"While fourth quarter output was impacted by a sharp decline in military outlays and negative adjustments to inventory, the data shows that economic activity is unlikely to accelerate meaningfully during the months ahead," said Basu. "The economy entered 2013 with precious little momentum, and now has to adjust to a set of higher tax rates.
Guam's economy is not faring any different. With federal expenditures threatened by forces in Washington DC and local businesses hoping for an uptick with a number of projects coming on line including the Guam Museum and federal facility upgrades, it appears that the island's construction industry is moving forward as best as can be.
Diversification is the latest buzzword on the job sites. Patience is also being tested.
To switch our island economic engine into a new gear is going to require increased strategic planning with the changing times locally and nationally and a realization that this could be the "new normal" for months and years to come.