The Associated Builders and Contractors (ABC) trade association's recent Construction Economic Update provided this graphic that shows every $1 billion in extra construction spending generates an average of at least 6,300 construction jobs.
ABC bases its assumption on annual construction spending data for 2017 ($1.23 trillion), with an estimated 4 percent growth (to $1.28 trillion) for 2018, 4 percent on top of that (to $1.33 trillion) for 2019, 3 percent growth above the 2019 construction spending level (to $1.37 trillion) for 2020 and 3 percent growth above 2020 construction spending (to $1.42 trillion) for 2021.
The employment projections assume that the administration’s $1.5 trillion proposed infrastructure plan, if enacted, will result in $50 billion in additional construction spending in 2019 on top of the baseline construction spending forecast; $150 billion additional spending in 2020; and $200 billion more in 2021. Thus, demand for additional construction workers above the baseline estimate for each year would be 323,000 in 2019, 960,000 more workers in 2020 and 1.3 million more workers in 2021.
The ABC Employment Demand Forecast is based on a model developed by Markstein Advisors to estimate total private construction employment demanded, excluding the self-employed, derived from the amount of construction spending.