The U.S. economy added 943,000 jobs in July, as the labor market recovery boomed
Hiring continued to surge in July, as the United States added 943,000 jobs. It marked the second straight month of strong growth just as the delta variant of the coronavirus pandemic began to spread more rapidly across the country. The unemployment rate in July fell to 5.4 percent from 5.9 percent, a sizable monthly reduction. July’s tally was the highest number of jobs added since last August, and surpassed June’s impressive numbers, which were revised up in the report to 938,000. Economists, political leaders, executives and many workers are now watching to see where the economy goes from here. Just in the weeks since the hiring data was collected, numerous firms began requiring vaccinations or imposing new mask restrictions on employees. The stock market, though, remains at record levels, and the recent reports about brisk hiring in June and July show that this momentum could be hard to knock off course.
Spending on construction up slightly in June
Public-sector construction was down, but the private sector was up, resulting in an overall construction spending gain of 0.1% in June, according to the Commerce Department. The spending total climbed 8.2% on a year-over-year basis. Full Story: Reuters
Construction employment rate increases, but trails pre-pandemic high
Supply chain constraints and rising materials prices are putting a dent in firms' plans to hire new workers, according to economists. https://www.constructiondive.com/news/construction-employment-rate-increases-but-trails-pre-pandemic-high/604361/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202021-08-03%20Construction%20Dive%20Newsletter%20%5Bissue:35845%5D&utm_term=Construction%20Dive
Consumer spending up 1% in June
Commerce Department data shows consumer spending rose 1% in June compared with May, providing further evidence of recovery from the pandemic. Consumer spending has been a key component of economic growth, increasing at an 11.8% annual rate in the second quarter, according to government estimates. Full Story: The Associated Press
Billions more needed to address climate infrastructure needs of US cities: report
Cities need at least $10.6 billion to fund more than 300 sustainable infrastructure projects, according to a survey of 97 U.S. cities. https://www.constructiondive.com/news/billions-climate-change-infrastructure-us-cities-cdp-report/603974/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202021-07-30%20Construction%20Dive%20Newsletter%20%5Bissue:35792%5D&utm_term=Construction%20Dive
CBO Scores Infrastructure Package
The Congressional Budget Office released an analysis of the Senate's bipartisan infrastructure bill on Thursday afternoon that found the measure would increase the federal deficit by $256 billion over a 10-year period. The CBO score was a key ask for senators before they could move forward to finish the bill, either on Thursday or over the weekend. READ MORE: https://www.politico.com/news/2021/08/05/bipartisan-infrastructure-bill-senate-vote-502555
Amendments to Senate infrastructure bill under review
Senators are reviewing and voting on amendments to the Infrastructure Investment and Jobs Act, which proposes spending approximately $1 trillion to maintain and improve infrastructure. The House, which has put forth the Investing in a New Vision for the Environment and Surface Transportation in America Act, "gets to play basically spoiler or victor," says Jimmy Christianson, vice president of government relations at AGC. Full Story: Engineering News-Record (tiered subscription model)
L.A. County heavy-rail project enters pre-development
Bechtel and LA SkyRail Express will work on concepts for the $9.5 billion Sepulveda Transit Corridor Project after receiving clearance to proceed. The Los Angeles County Metropolitan Transportation Authority has approved the pre-development step for the heavy-rail project, which proposes to connect the San Fernando Valley with the west side of Los Angeles and Los Angeles International Airport. Full Story: Los Angeles Daily News
Tax ramifications for contractors subject to change
C corporations and pass-through entities have different considerations regarding taxation, and those might shift as legislation proceeds to implement the Biden administration's initiatives, especially considerations related to infrastructure. One consideration is the qualified business income deduction, which might be subject to revised thresholds. Full Story: Construction Dive
San Diego to spend $293M on infrastructure
The San Diego City Council has approved $293 million worth of projects to address neglected infrastructure. The funding applies to roads, parks, public safety equipment, environmental services and city facilities. Full Story: Times of San Diego/City News Service
How roads would benefit in infrastructure bill
California would receive at least $39 billion for roads and bridges under a bipartisan infrastructure bill in Congress, and Texas would receive $26.9 billion for highways and $537 million for bridges, making these states the biggest beneficiaries. A total of $110 billion is targeted for roads and bridges nationwide out of $550 billion in new spending. Full Story: Bloomberg
California drought: One of the state's biggest reservoirs hit a record low this week
Lake Oroville, one of California’s biggest reservoirs, reached its lowest-ever point this week, breaking a record set decades ago in the latest troubling sign of the punishing drought conditions afflicting the state. Jessica Flores in the San Francisco Chronicle
AGC offers recommendations to respond to climate change
AGC has released a report that recommends how AGC, construction firms and the industry in general can respond to evolving climate change policies. Recommendations include having a strategic national investment approach that focuses on community resilience, prioritizing projects related to cutting carbon emissions and modernizing federal buildings. "The construction industry is key to any measures needed to make our economy more efficient, less carbon intensive and more resilient," AGC CEO Stephen Sandherr says. Full Story: Fronteras Desk (Tempe, Ariz.)
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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