Study: Anti-Sprawl Strategies Good for Construction Jobs

11/20/2003

From: Phil Mattera, 202-626-3780 ext. 32 or Greg LeRoy ext. 27; both of Good Jobs First

WASHINGTON, Nov. 20 -- A new study by Good Jobs First (GJF) finds that, contrary to common belief, smart growth policies are good for construction jobs. The report provides evidence that smart growth can create more employment opportunities than sprawl for workers who build residential and commercial structures and transportation infrastructure.

The study is available on GJF's website, http://www.goodjobsfirst.org.

"Our findings challenge the conventional idea that construction employment suffers when communities seek to curb sprawl and manage growth," said GJF Executive Director Greg LeRoy. "In fact, our research shows just the opposite, that smart growth fosters job growth."

LeRoy emphasized organized labor's expanding role in the movement against suburban sprawl, including the national AFL-CIO's 2002 convention resolution denouncing sprawl and the San Diego-Imperial Counties Labor Council's recent endorsement of an Urban Growth Boundary ballot initiative.

The study, The Jobs are Back in Town: Urban Smart Growth and Construction Employment, examines how growth-management policies affect construction jobs. In Oregon, which adopted the country's first UGBs a quarter-century ago, construction job growth outpaced the nation's more than 4 to 1 for the most recent 15-year period.

GJF also commissioned two senior urban scholars to compare 155 metro areas. Those with growth management policies enjoyed construction activity per new resident more than $100,000 higher than "business as usual" areas over a ten-year period.

The study also analyzes the labor intensity of different types of buildings. Using data from a prominent estimating firm, it compares compact building types (apartment houses and townhouses) to single-family homes. In denser construction, labor makes up a larger portion of total costs.

Finally, the study compares highway projects, using data from the Federal Highway Administration. "Fix it first" projects -- such as resurfacing, rehabilitation and reconstruction of roads -- are more labor-intensive than new highway construction, after adjusting for land costs.

"We already know that smart growth reduces traffic and promotes clean air," said Carl Pope, Executive Director of the Sierra Club. "This report provides another important reason why smart growth is a winning formula for the economy and the environment."

Editor's note: Good Jobs First is a non-profit, non-partisan research center promoting best practices in economic development; it is based in Washington, DC.