Construction and Other Jobs Getting a Shot in the Arm

What people need are real jobs that exist beyond political elections, and are tied with the economy and not pure politics. So, infrastructure spending is back with a bang, and there has been a recent announcement for a $50 billion plan to boost infrastructure and revive employment in the construction and related sectors. The plan is expected to generate at least a million jobs over time, and given the fact that almost one in every four jobs lost since the recession has been in the construction sector, this is a much-needed step. As 2 million jobs have already been lost in the construction and allied industries since 2007, infrastructure projects are needed to boost both the present and the future of our economy. You can again thank the democratic system and the nearby election for boosting government performance.

According to industry reports, the federal administration is also mulling over a proposal for 100% tax breaks on capital investments in business, through 2011. Economists suggest that this can well lead to businesses saving around $200 billion over the next two years. The White House has issued a statement saying, ”This unprecedented step would be the largest temporary investment incentive in American history….” According to statements issued the White House plans to cover the costs of these proposals by closing tax breaks for oil and gas companies.

Back to the topic, the essence of this information is that the construction sector is receiving positive boosts and if you are a laid-off worker, or are working in the construction sector, it is time to brush up your resume and hone your skills for times might change for the better. Also, if the incentive for capital investment in businesses becomes reality, we might experience job growth in other industry sectors.

The construction sector has been a traditional employer for those without high school diplomas or who did not study beyond high school. This is the same demographic sector, which accounts for almost half of the total unemployed in US. Hence, jobs returning to the construction sector is good news, though the same step could have been taken last year and the government could have been spending on infrastructure rather than extending UI checks. It is always better to subsidize employment than subsidize unemployment.

Though, every month the statistics for numbers of jobs is there, there has been very little qualitative assessment of those numbers. As per reports of the National Employment Law Project, low-paying jobs accounted for less than a third of the jobs lost since the recession, however, close to 75% of the jobs created this year are in the low-paying fields with the median income of less than $10 an hour. Unless the job growth returns to decently paying employment, those increases in job numbers only exhibit concealed unemployment and not fruitful employment required to shoulder family needs by any responsible provider.