Construction Jobs Rise Post Two-Year Infrastructure Law

TL/DR -

The Bipartisan Infrastructure Law, signed by President Biden two years ago, has led to significant investments in various sectors, including transportation infrastructure, electric grid modernization, high-speed internet access, pollution clean-up, and clean energy economy build-up. The law has already supported hundreds of thousands of jobs, predominantly in construction and manufacturing, with the construction sector adding 670,000 jobs since Biden assumed office in January 2021, surpassing the pre-Great Recession high. The investments have led to rapid job gains in the construction of buildings and heavy and civil engineering industries, with the added jobs contributing to the building of utility systems, roads, bridges, transit systems, and nonresidential buildings like factories and warehouses.

Biden-Harris Administration's Impact on Construction Industry

The Bipartisan Infrastructure Law, legislated by President Biden two years ago, has made significant contributions to America's economy by initiating the development of a clean energy economy, modernizing transportation infrastructure, and expanding high-speed internet access, among other things. The law has also encouraged domestic manufacturing of construction materials and incentivized domestic production of electric vehicle charging stations and water infrastructure parts through the Build America, Buy America requirements.

Researchers foresee this law supporting thousands of jobs, especially in construction and manufacturing. There are already signs of economic benefits, with job gains in construction hinting at the law's early impacts. Since President Biden entered office in January 2021, the economy has gained 670,000 construction jobs, surpassing pre-Great Recession highs. This trend is likely due to the Bipartisan Infrastructure Law's success in creating high-paying jobs in the construction sector.

The Biden-Harris Administration has also introduced measures to enhance the quality of construction jobs. This includes mandating project labor agreements for large-scale federal construction projects and updating the Davis Bacon Prevailing Wage Rule for the first time in nearly four decades, which will increase the wages of over one million construction workers over time.

To analyze the effect of the Bipartisan Infrastructure Law on construction employment, we will delve into two key sub-industries of the construction sector: heavy and civil engineering and construction of buildings. Both industries have experienced rapid job growth recently, primarily attributed to the employment boom in highway, street, and bridge construction, and nonresidential building construction.

Heavy and Civil Engineering Industry

The heavy and civil engineering industry, which includes building utility systems, roads, bridges, and transit, has seen employment growth, particularly in road and bridge construction. Since the beginning of Biden's administration, the sector has added 92,400 jobs, with much of the recent growth coming from highway, street, and bridge construction. This industry has added 38,300 jobs since January 2021, with 37,600 added after the Infrastructure Law was enacted in November 2021. This robust job growth rate highlights the law's successful initiation.

Construction of Buildings Industry

The construction of buildings industry, dealing with the construction of new structures, additions, alterations, maintenance, and repairs, has also seen impressive gains. This industry has added 187,000 jobs since January 2021, split roughly equally between residential and nonresidential building construction. The nonresidential sub-sector has seen a particularly strong employment growth, indicating the successful implementation of the Bipartisan Infrastructure Law.

So far, the Bipartisan Infrastructure Law has stimulated the demand for high-paying construction jobs, which are crucial for rebuilding the nation's infrastructure. Along with this, the law has also initiated a $250 billion fund for workforce development over five years to meet this demand. Over half of the states are already utilizing this fund, investing $39 million to prepare their workforces for jobs in construction and other transportation-related occupations.

Since President Biden took office, the administration has announced nearly $400 billion in public infrastructure and clean energy investments, with 40,000 infrastructure projects underway. As these investments continue, further benefits for American families, such as increased productivity and economic growth, are expected to surface.

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