ABC: Each $1 Billion in Construction Spending Adds 6,300+ Jobs

If proposed infrastructure plan enacted, demand for additional construction workers would be 323,000 in 2019, 960,000 more workers in 2020 and 1.3 million more workers in 2021

Abc Construction Spending
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Starting with the annual construction spending data for 2017 ($1.23 trillion), the estimate assumes 4% growth (to $1.28 trillion) for 2018, 4% on top of that (to $1.33 trillion) for 2019, 3% growth above the 2019 construction spending level (to $1.37 trillion) for 2020 and 3% growth above 2020 construction spending (to $1.42 trillion) for 2021.

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 and to estimate total private construction employment demanded, excluding the self-employed, based on construction spending, the model says every $1 billion in extra construction spending generates an average of at least 6,300 construction jobs.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.

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