Stimulus construction funds have little impact on companies' ability to hire
The stimulus plan appears to be having little influence on construction companies' ability to expand payrolls to date, according to a new industry analysis of the impact of the federal program's construction spending released today by the Associated General Contractors of America, Arlington, Va. The "disappointingly" slow pace of construction spending outside of the transportation sector is one of the main reasons for the relatively small impact on new hiring, the group noted.
"While the construction portion of the stimulus is having an impact, it is far from delivering its full promise and potential," said Stephen E. Sandherr, the chief executive officer of the contractors association. "With construction unemployment at almost double the national rate, it is disappointing to see so many stimulus programs getting off to such a slow start."
Sandherr said that five months into a federal stimulus program that has approximately $135 billion dedicated for construction projects, there is little difference in hiring and purchasing patterns between companies doing stimulus-funded work and companies that aren't, according to a July 30 AGC of America release.