North Dakota construction unemployment rate jumped in November

BY LISA GIBSON

North Dakota has been among the states with the lowest construction unemployment rates in the nation from July to October, but had the third highest rate in November, according to the most recent figures released monthly by Associated Builders and Contractors. The November figures are the most recent available.

North Dakota had a 10.4 percent construction unemployment rate in November, a dramatic increase from 4.5 percent in October. The jump was not a surprise, says economist Bernard Markstein, as the state’s cold weather generally kicks in around November. “Construction doesn’t completely grind to a halt, but some of it does,” he says.

But the effects of the slump in the energy industry play a large part, too. “Finally, some of the energy companies had to make some big decisions,” Markstein says. “It’s the new wells that push the demand for construction.”

Not only does the oil downturn slow construction on wells, but also on housing, along with grocery stores, shopping centers and other commercial structures, he says.

2015

From October to November, 3,300 jobs were lost in North Dakota’s construction industry, according to figures from the Bureau of Labor Statistics. “That’s a large impact,” Markstein says. The November increase represents North Dakota’s largest monthly and year-over-year jump. November 2014 showed a 7.9 percent construction unemployment rate. The same month in 2013 had 6.7 percent construction unemployment and November 2012 had 11.2 percent.

New Hampshire had the lowest construction unemployment rate in November 2015, at 3.7 percent. Colorado was second at 3.9 percent, falling from No. 1 in October. Alaska had the highest unemployment rate in November, at 14.8 percent. PB

Lisa Gibson Editor, Prairie Business 701.787.6753 lgibson@prairiebusinessmagazine.com