THE CAPITOL UPDATE WILL BE OFF ON THE 29th, AND WILL RETURN IN DECEMBER. HAPPY THANKSGIVING!!
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The Center for Jobs and the Economy
The Center for Jobs and the Economy has released our initial analysis of the October Employment Report from the California Employment Development Department. For additional information and data about the California economy visit www.centerforjobs.org/ca. Comparisons across states will be addressed in our full jobs report following release of the data by US Bureau of Labor Statistics on the 19th.
- The October numbers continued to show relative weakness in the state economy. Nonfarm jobs (seasonally adjusted) dropped by 5,500 in the preliminary results. The results for September were revised down by 2,200 to a gain of 12,700. Over the past three months, nonfarm jobs have grown by only 6,000, compared to 74,200 in the same period in 2023.
- The unemployment rate rose by 0.1 point to 5.4%. Total employment (seasonally adjusted) dropped by 5,800 over the month, while posting an 82,700 loss from the near-term peak experienced in May 2023. Total number of unemployed continued increasing by 13,100 over the month, bringing the total rise in unemployed to 322,400 since the near-term low seen in August 2022. The number of unemployed has now remained above 1 million every month so far this year
- California's reported unemployment rate (seasonally adjusted) rose 0.1 point to 5.4%. The US rate was unchanged at 4.1%.
- Employment dropped by 5,800 (seasonally adjusted), with the total employment loss since the previous peak in May 2023 rising to 82,700. Nationally, employment dropped by 368,000. California unemployment rose by another 13.100, while US unemployment rose by 150,000. California unemployment has been above 1 million for the past 10 months in a row, the highest levels since the pandemic period in 2021.
- Nonfarm wage and salary jobs dropped 5,500 in the preliminary results for October, while the August gains were lowered by 2,200 to a gain of 12,700. For the US as a whole, nonfarm jobs were essentially unchanged with a gain of only 12,000. Due to the hurricane events, however, the response rate for the establishment survey used to estimate the job numbers was well below average although it still produced statistically significant results. Expanding industries were dominated by Healthcare & Social Assistance (7,600) and followed by Private Education Services (1,800) and Transportation, Warehousing & Utilities (1,800). Six industries showed job losses, led by Administrative & Support; Waste & Remediation Services (-8,800), Government (-7,500), and Arts, Entertainment & Recreation (-1,900).
Gen Z is seeking trade careers. Here's how to keep them
Gen Z is increasingly opting for trades over traditional degrees, driven by job stability, competitive wages and technological integration. To retain these workers, construction companies should offer clear career development, entrepreneurial pathways, tech-forward training, competitive pay and benefits that align with Gen Z values, writes Kit Dickinson from ADP. Full Story: For Construction Pros
Democrat sees good potential for builders under Trump
Patrick Murphy, a former Democratic congressman, current chief information officer at Coastal Construction and CEO of AI estimation company Togal.ai, sees potential benefits of a Trump administration for builders, including regulatory streamlining, AI-driven efficiency, and pro-growth policies like tax cuts and zoning reforms. However, Murphy is concerned about proposed tariffs and immigration policies, which could drive up costs and worsen labor shortages. Full Story: Construction Dive
Key infrastructure issues focus in 'lame duck' period
As the 118th Congress enters its 'lame duck' session, lawmakers face pressing tasks, including passing a government funding bill and disaster relief for hurricane-stricken states. Key infrastructure bills, such as the reauthorization of earthquake and wind hazard programs and the Water Resources Development Act, are also on the docket, with bipartisan support needed to ensure their passage. Full Story: American Society of Civil Engineers
How Trump's policies could affect the economy
The US economy is in a solid position going into 2025, and how president-elect Donald Trump's policies will affect it remains unclear. "There are two multiplicative sources of uncertainty: One, of course, is what they're going to do," said Michael Feroli, the chief U.S. economist at JPMorgan. "The other is: Even if you know what they're going to do, what is it going to mean for the economy?" To quantify the impact, details are needed on policy wild cards including tariffs, mass deportations, and deregulation. Full Story: The New York Times
Construction input prices remain stable in Oct.
Construction input and bid prices remained relatively stable in October, with material and service inputs showing minimal month-to-month changes but reflecting a 37% cumulative increase since February 2020, far outpacing general consumer inflation. November ballot measures across the US secured significant funding for infrastructure and transit, but school construction had mixed results at the polls. Full Story: Construction Citizen
41 states see year-over-year construction job growth in Oct.
Thirty-three states and the District of Columbia added construction jobs between September and October, and 41 states saw year-over-year growth in construction employment between October 2023 and October 2024, according to an analysis by the Associated General Contractors of America. For the 12-month period, Alaska had the highest percentage point gain, at 19.1%, while Oregon experienced the biggest decline, at 4.3%. Full Story: Associated General Contractors of America
Architecture Billings Index up for first time in 20 months
The Architecture Billings Index from the American Institute of Architects rose above 50 in October for the first time in 20 months, indicating an increase in billings. "Billings finally stabilized this month, and firms are feeling more optimistic about revenue projections for 2025," said Kermit Baker, chief economist at the AIA. "Overall, 41% of responding firm leaders expect to see net revenue growth from 2024 to 2025, with 32% projecting growth in the 5% to 9% range." The South was the only region to report growth, while institutional projects saw the highest billings growth among sectors. Full Story: The Architect's Newspaper
GOP eyes reconciliation for 2025 permitting reform
Republicans are considering using budget reconciliation to pass permitting reform in 2025 if a bipartisan deal isn't reached this year. House Natural Resources Committee Chair Bruce Westerman, R-Ark., says Republicans are studying how Democrats passed the Inflation Reduction Act through reconciliation. Democrats are skeptical, citing limitations of the Byrd Rule, which restricts provisions not directly related to the budget. Full Story: E&E News
Could Trump build on permitting reform? AECOM is hopeful
AECOM is optimistic about the potential for permit reform under the incoming Trump administration, says CEO Troy Rudd. "Prudent deregulation," Rudd says, could alleviate barriers in infrastructure investments, thereby increasing project opportunities. The company has completed its acquisition of EMPSi, an environmental permitting practice, to capitalize on these opportunities. Full Story: Construction Dive
Fossil fuel development poised to grow under Trump
President-elect Donald Trump has selected nominees for key cabinet positions affecting construction, including Doug Burgum for Interior Secretary, Chris Wright for Energy Secretary, and Lee Zeldin to head the Environmental Protection Agency, signaling a shift towards fossil fuel development and deregulation. Critics argue that these choices, particularly Wright and Burgum, could undermine environmental protections and accelerate climate change, while proponents emphasize their focus on streamlining regulations and boosting US energy dominance. Full Story: Engineering News-Record (tiered subscription model)
Nuclear power seen as key as data center demand rises
Amazon, Google and Microsoft are turning to nuclear power, and particularly small modular reactors, or SMRs, to meet the growing energy demands of data centers, creating new opportunities for contractors with specialized expertise. Fluor CEO David Constable says SMRs are a key growth area, emphasizing their modular design's ability to simplify construction and reduce timelines, making them ideal for supporting the energy-intensive needs of data centers and aligning with sustainability goals. Full Story: Construction Dive
Modular construction aligns with Gen Z's housing values
Multifamily developers are increasingly turning to modular construction to meet the housing preferences of Generation Z, who prioritize sustainability and affordability, writes Chris Anderson from Vantem. Modular construction offers energy-efficient, net-zero homes and reduces emissions by relocating the building process to a controlled environment. This approach also accelerates project completion and reduces costs, making it a viable solution for developers aiming to attract Gen Z renters, Anderson notes. Full Story: For Construction Pros
Autonomous construction equipment market looks strong
The autonomous construction equipment market, valued at $4.43 billion in 2024, is projected to grow to $9.86 billion by 2030, according to a report by MarketsandMarkets, due to a combination of labor shortages, safety improvements, cost efficiencies and sustainability gains. Key developments include rapid advancements in electric propulsion, AI integration and strategic collaborations among industry leaders like Caterpillar and Komatsu, though challenges like high initial costs and regulatory compliance remain. Full Story: Global Construction Review (UK)
Turner restructures leadership, focuses on key markets
Turner Construction has restructured its operations into two main business lines--construction and enterprise services--to expand its reach in the emerging data center, biopharma, energy transition and semiconductor markets. The units will be led by newly promoted presidents Abrar Sheriff and Tom Reilly, respectively. The company has also promoted seven leaders to its Executive Management Group, two of whom, Aaron Wiebelhaus and Lisa Ballantyne, will serve as managing director and chief administrative officer, respectively. Full Story: Engineering News-Record (tiered subscription model) Construction Dive
Labor Dept. overtime rule deemed an overreach
A federal judge in Texas has rejected the Labor Department's April 2024 rule raising salary thresholds for the white-collar overtime exemption under the Fair Labor Standards Act, citing that the changes exceeded the agency's authority. The ruling voids the July 2024 salary increase and halts the planned January 2025 adjustments, reverting thresholds to 2019 levels, while leaving open the possibility of a federal appeal. Full Story: The National Law Review/Ogletree, Deakins, Nash, Smoak & Stewart
McCarthy/Jacobs picked for Torrance, Calif., desal project
The Water Replenishment District of Southern California has selected a joint venture of McCarthy Building Cos. and Jacobs as the progressive design-build team for a $160 million expansion of a groundwater desalination facility in Torrance, Calif. "The progressive design-build delivery model allows us to work collaboratively to minimize cost, reduce risk, streamline construction and improve schedule performance to fast track the completion of this state-of-the-art facility that will provide a sustainable drinking water supply for the near term and well into the future," said Jacobs Senior Vice President Katus Watson. Full Story: The Construction Broadsheet
$175M San Francisco beach protection plan approved
The California Coastal Commission has approved San Francisco's $175 million plan to protect subsurface wastewater infrastructure along Ocean Beach, including the Lake Merced Tunnel. The 10-year project will include building a seawall, a multi-use recreational trail and dune habitat restoration while addressing erosion and stormwater overflow concerns. Full Story: The Construction Broadsheet
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Mark Smith
Advocate
California Builders Alliance
5370 Elvas Avenue ǀ Sacramento, CA 95819
Cell: 916.335.5072
Email: mark.smith@calbuilders.org
Email: mark@smithpolicygroup.com
