Restrictive Policies Contribute to California’s Low Construction Employment Ranking

SACRAMENTO, Calif. — The construction unemployment rate in California stands at 3.9% through June 2024. While this marks a decrease in a year, a deeper review of the numbers shows that only 7 states have seen their unemployment rates improve slower than California, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by the Associated Builders and Contractors (ABC). “While the industry is pleased with a relatively low unemployment rate, we wonder how much lower it could be if we simply adopted policies consistent with the rest of the nation,” said John Morris, President and CEO, ABC Northern California Chapter (ABC NorCal).

California’s ranking in the bottom 15% of the nation is reflective of the state’s regulatory complexities and policies which increase project costs and reduce opportunities for more construction projects and economic growth. The analysis by ABC underscores the critical need to address the policies contributing to California’s low position relative to the rest of the country.

Morris added, “California policies like project labor agreements and the frivolous lawsuits imposed by the California Environmental Quality Act reduce the amount of construction projects and increase the unemployment rate of skilled trades workers. ABC NorCal is committed to working with industry leaders and policymakers to create solutions that will enhance career opportunities and overall economic growth while reducing our state’s deficit and unemployment rates.”

ABC is the voice of the construction industry in Northern California, representing over 83,000 workers.

Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the COVID-19 pandemic, including a graphing tool that creates a chart for multiple states (XLSX FILE): https://www.abc.org/Portals/1/CEU/State%20Construction%20UR%20Tables_ABC_Jun%202024%20Data.xlsx?ver=4RdjC4twmDrHpA8vg4EiJQ%3d%3d.

To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates: https://www.abc.org/News-Media/News-Releases/background-on-state-construction-unemployment-rates.

Visit https://www.abc.org/News-Media/News-Releases?Category=construction-economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

About ABC:

ABC, established in 1950, is a national construction industry trade association with 68 chapters representing more than 23,000 contractor members and millions of workers. Founded on the merit shop philosophy, ABC helps members develop construction jobs, win work, and deliver that work safely, ethically and profitably.

Visit us at https://abcnorcal.org/.

MEDIA CONTACT:

Matthew Estipona, ABC | (415) 235 – 2853 | matthew@abcnorcal.org

ABC press room: https://abcnorcal.org/press-room/.

Related link: https://abcnorcal.org/

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