The more than $135 billion in construction and infrastructure investments included in stimulus legislation being signed into law by President Barack Obama will create or save nearly 2 million jobs over the next two years, the Associated General Contractors of America concluded in its final analysis of the legislation.
The analysis, conducted by the association’s chief economist, Ken Simonson, concluded that the infrastructure and construction funding would create or save 650,000 construction jobs and 300,000 positions in related fields such as equipment and material supply. An additional 970,000 jobs in the broader economy would also be created or supported by the investments.
“There’s no doubt the stimulus will have a positive impact for construction businesses and their workers across the country,” said Stephen Sandherr, chief executive officer of the Associated General Contractors of America. “When you get beyond the politics and the policy, the fact remains these investments will put people to work, save businesses and help rebuild aging infrastructure.”
In addition to estimating the number of jobs to be created by the construction funding, the association also calculated the benefits to personal earnings and gross national product (GDP). Association economist Ken Simonson noted that the $135 billion for construction would increase personal earnings nationwide by $75 billion and add $230 billion to GDP.
“Whether or not you wear a hard hat for a living, these construction investments will make a difference for the better,” said Simonson. “Beyond the immediate benefits, the new infrastructure projects will make businesses more efficient, commuting more reliable and our economy more prosperous for years to come.”
Simonson said the new analysis is based on research on the economic benefits of infrastructure investments conducted by the association in cooperation with Professor Stephen Fuller of George Mason University.