bls_0984_1950.pdf

CONSTRUCTION 1948 in Review

Annual Report on Construction Activity and Employment

Bulletin No. 984

UNITED STATES DEPARTMENT OF LABORMaurice J. Tobin, Secretary

BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner

For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C. Price 30 cents

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Letter of TransmittalU nited States D epartment of Labor,

B ureau of Labor Statistics, Washington, D .

ContentsConstruction labor: Page

Employment by construction contractors________________________________________________ 1Labor requirements for new construction________________________________________________ 3Earnings and hours in construction_____________________________________________________ 6

Construction volume:Expenditures for new construction______________________________________________________ 11Federal contract awards for new construction____________________________________________ 17

Housing:Estimating nonfarm housing_____________________________________________________ 26Production in 1948______________________________________________________________ 28Shifts in location of new housing_______________________________________________________ 35Construction costs____________________________________________________________________ 37

Urban building construction:Volume_____________________________________________________________________________ 38Location____________________________________________________________________________ 38

TABLES1. Employment by construction contractors, monthly, 1939-48_______________________________ 12. Employment by construction contractors, compared with nonagricultural employment, 1929-48. _ 13. Employment by construction contractors, in selected States, 1943-48_____________________ 24. Number of workers required to put in place new construction, by type of construction, 1939-48. . 45. Number of construction workers employed at the site of atomic energy projects, monthly, 1943-48. 56. Number of site workers required to put in place new construction, by skill and occupation, selected

years_____________________________________________________________________________ 57. Earnings and hours in private building construction, and index numbers, 1934-48__________ 68. Earnings and hours of workers employed by construction contractors on private projects, by type

of contractor, monthly, 1947-48_____________________________________________________ 99. Earnings and hours of contract construction workers, by type of employing contractor, monthly,

1948_____________________________________________________________________________ 1010. Average weekly hours and average weekly and hourly earnings on Federal construction, by type

of construction, 1947-48____________________________________________________________ 1111. Expenditures for new construction, by type of construction, selected years________________ 1212. Expenditures for new construction, in 1939 prices, by type of construction, selected years___ 1313. Greatest year-to-year increase and maximum annual expenditures for new construction, in current

and 1939 prices, by type of construction, 1915-48______________________________________ 1414. Federal expenditures for new construction, by type of construction, 1915-48____________ 1615. Expenditures for new construction, by type of construction, monthly, 1947-48_____________ 1616. Value of Federal contract awards for new construction, by type of construction, 1935-48____ 1817. Value of Federal contract awards for new construction, by type of construction and by region and

State, 1943-48_____________________________________________________________________ 2018. New permanent nonfarm housing started, by urban or rural location and by private and public

ownership, 1910-48________________________________________________________________ 2719. New permanent nonfarm housing started, by type of structure, 1920-48__________________ 3020. New urban dwelling units authorized, by type of structure and by city-size class, 1947-48___ 3121. New urban dwelling units authorized, by type of structure and by geographic division, 1947-48. 3222. New urban dwelling units authorized in each State, by type of structure and by ownership,

1947-48_____________________________________________ 3423. New nonfarm housing started, by private ownership, and by public ownership (whether perma

nent or temporary) 1935-48_________________________________________________________ 3524. New nonfarm housing authorized, by city-size class and ownership, 1946-48_______________ 3625. Percent of new permanent nonfarm dwelling units started inside and outside of metropolitan

areas, 1947-48_____________________________________________________________________ 3626. Composite index of principal components of construction costs for new private building, 1934-48. _ 3727. Average construction cost for new privately owned 1-family dwelling units started, 1940-48__ 3728. Indexes of the valuation of urban building authorized, by class of construction, 1929-48____ 3929. Urban building authorized, by class of construction and ownership, 1942-48_______________ 4030. New urban nonresidential building authorized, by general type of building and by region, 1947-48. 4131. New urban nonresidential building authorized, by type of building and ownership, 19^7-48__ 42

(V )


TABLESContinuedPage

32. Urban building authorized, by region and State and by ownership, 1947-48_______________ 4333. Urban building authorized, by city-size class and ownership, 1947-48_____________________ 4534. Cities leading in valuation of building construction authorized in 1948, by type of building___ 4635. Building construction authorized in cities with 1940 population of 50,000 or more, 1948______ 47

CHARTS1. Employment by construction contractors______________________________________________ 22. Average weekly earnings in private building construction_________________________________ 73. Expenditures for new construction______________________________________________________ 154. Value of Federal contract awards for new construction___________________________________ 195. New permanent nonfarm housing started______________________________________________ 296. New urban and rural-nonfarm housing started__________________________________________ 35

(VI)


Construction1948 in ReviewConstruction Labor

Employment by Construction Contractors

Construction employment in 1948 continued to gain in importance in the over-all employment picture. In spite of a generally tight labor market, construction contractors were able to expand their employed work force to an average of over 2,000,- 000 a month, to account for almost 5 percent of total nonagricultural employment. This represented the highest proportion in two decades on construction work for any peacetime year, except 1941. In 1942, when construction was at war peak, the ratio was 5% percent, compared with a wartime low of slightly over 2% percent in 1944.

Employment by construction contractors reached 2,000,000 in April and was maintained well

T a ble 1.Employment by construction contractors, monthly, 1939-48 1

MonthEmployment (in thousands)

1948 1947 1946 1945 1944 1943 1942 1941 1940 1939

Monthly average 2,165 1,982 1,661 1,132 1,094 1, 567 2,170 1,790 1,294 1,150

January_________ 1,929 1,702 1,220 950 1,114 1,835 1,675 1,606 904 927February................ 1,792 1,681 1,251 959 1,068 1,780 1,649 1,567 930 916March................... . 1,877 1,727 1,375 1,002 1,061 1,764 1,834 1,532 1,015 1,035April....................... 2,019 1,842 1,528 1,053 1,075 1,741 2,040 1,644 1,146 1,132

May........................ 2,153 1,936 1,617 1,093 1,109 1,694 2,222 1,738 1,260 1, 234June........................ 2,289 2,084 1,701 1,147 1,147 1,669 2,403 1,803 1,300 1, 272July........................ 2,348 2,129 1,802 1,187 1,153 1, 580 2,565 1,956 1,342 1,285A ugust.................. 2,384 2,193 1,887 1,232 1,157 1,524 2,577 2,014 1,371 1,312

September.............. 2,369 2,193 1,923 1,232 1,125 1,451 2,530 2,035 1,469 1,285October................... 2,334 2,166 1,910 1, 252 1,092 1,343 2,370 1,969 1,550 1,234November_______ 2,287 2,102 1,887 1,266 1,057 1, 272 2,212 1,879 1,607 1,161December............... 2,200 2,031 1,826 1,215 969 1,147 1,957 1,734 1,629 1,010

above that level throughout the remainder of 1948. At the peak, in August, almost 2,400,000 were employed on construction jobs. Except for 1942, the 1948 monthly average of 2,165,000 workers was the highest recorded since monthly data were first available (1939); it exceeded the 1947 average by 9 percent. In contrast, average employment in all nonagricultural establishments, while at an all-time high in 1948, was about 2 percent above 1947*

Nonfarm employment as a whole was not able to expand as rapidly as the construction segment for aT a ble 2 .Employment by construction contractors, com

pared with nonagricultural employment, 1929-48 1

Year

Average montl (in tho

All nonagricultural

establishments

tly employment usands)

Contractconstruction

Contract construction employment as

percent of employment in all nonagricultural establishments

1929........................... 31,041 1,497 4.81930........................... 29,143 1,372 4.71931........................... 26,383 1,214 4.61932_ ..................... 23,377 970 4.11933 ......................... 23,466 809 3.4

1934........................... 25,699 862 3.41935 ........................ 26,792 912 3.41936 ......................... 28,802 1,145 4.01937........................... 30,718 1,112 3.61938........................... 28,902 1,055 3.7

1939........................... 30,287 1,150 3.81940........................... 32,031 1,294 4.01941........................... 36,164 1,790 4.91942........................... 39, 697 2,170 5.51943 ......................... 42,042 1,567 3.7

1944 ......................... 41,480 1,094 2.61945........................... 40,069 1,132 2.81946 ........................ 41,412 1,661 4.01947........................... 43,371 1,982 4.61948........................... 44,201 2,165 4.9

1 The data cover all site and off-site wage and salaried employees of private firms whose major activity is construction, but exclude self-employed construction workers, working proprietors, and force-account employees of nonconstruction firms and public agencies engaged in construction activities.

(Force-account work is done, not through a contractor, but directly by a business or government agency using a separate work force to perform nonmaintenance construction on the agencys own properties.)

The estimates are based primarily on reports by construction firms to unemployment compensation agencies and to the Bureau of Old-Age and Survivors Insurance, adjusted currently in accordance with monthly reports to the Bureau of Labor Statistics or to cooperating State agencies from a sample of firms in each State. They are prepared as a segment of the Bureau of Labor Statistics nonagricultural employment series.

1 The estimates cover all full- and part-time wage and salaried employees. They are based primarily on employers reports to unemployment compensation agencies and to the Bureau of Old-Age and Survivors Insurance, adjusted currently in accordance with monthly reports to the Bureau of Labor Statistics or to cooperating State agencies from a sample of firms in each State.

The data on construction cover all site and ofl-site wage and salaried employees of private firms whose major activity is construction, but exclude self-employed construction workers, working proprietors, and force-account employees of nonconstruction firms and public agencies engaged in construction activities. (Force-account work is done, not through a contractor, but directly by a business or government agency using a separate work force to perform nonmaintenance construction on the agencys own properties.)

1


2 CONSTRUCTION1948 IN REVIEW

Chart 1 . E m ploym ent b y Construction Contractors

Millions of Employees

number of reasons. The basic raw material and manufacturing industries had already attained near-capacity operation in 1947, and the available labor supply was almost fully employed. In construction, on the other hand, the production of materials reached unprecedented levels in 1948 so materials supply was no longer a problem. Total construction backlog was greater than ever, and high prices were not a retarding factor in home- building until the last half of the year. Furthermore, the supply of building trades workers was increased noticeably by the apprentice training program. The number of apprentices employed in registered programs in the construction industry reached an all-time high of 134,300 in December 194817 percent more than at the same time in 1947. In addition, man-days idle because of work stoppages due to labor-management disputes had dropped almost 48 percent from 1947 in the construction industry, compared with an over-all decline of less than 2 percent.

New York, with an average of 212,000 workers, was the leading State in construction employment

in 1948. California was second, with not quite200,000. These 2 States had been in the lead for a number of years, but with their relative positions reversed from 1943 (the first year for which State data are available), through 1946. During the war years, California ranked first largely because of expansion in aircraft and shipyard plants and in emergency housing for war workers. The construction share of nonagricultural employment in California was 6% percent in 1948, compared with less than 4 percent in New York.

Of the 29 States for which the Bureau currently publishes estimates1 (table 3), Texas, where

T able 3.Employment by construction contractors, in selected States, 194-3-48 1

Number of workers (in thousands)Diate

1948 1947 1946 1945 1944 1943

Arizona________________ 12.6 11.1 8.9 6.0 5.3 13.8A rkansas______________ 16.5 15.9 13.2 19.0 7.0 18.9California____ _________ 199.9 192.9 172.3 136.6 133.1 137.9C onnecticut___________ 2 32.8 2 30.2 24.1 14.7 14.1 17.6Georgia________________ 36.0 36.0 22.8 15.9 17.6 34.0

Idaho__________________ 7.8 7.1 5.4 3.4 3.8 6.0Illinois______ _________ 113.1 111.7 88.0 63.3 59.5 81.2Indiana. _____________ 51.8 46.9 39.4 30.0 24.4 36.6K ansas_________ _____ 27.5 23.3 18.1 13.0 12.1 34.8M aine_______ ______ _ 11.5 11.3 7.6 4.7 5.0 10.1

M aryland _________ 53.2 46.5 34.9 23.6 24.6 44.0M assachusetts________ 62.6 59.8 54.4 36.6 31.7 36.3M innesota...................... 38.3 37.0 31.0 19.0 15.7 18.1M issouri______________ 46.5 45.5 38.6 25.2 19.6 28.4M ontana______________ 8.8 7.3 5.8 3.7 3.1 3.3

N ew H a m p s h ir e ____ 7.4 7.5 5.9 3.0 2.4 3.0N ew Jersey.......... ............. 67.1 61.6 55.6 37.5 38.5 47.5N ew M exico. __ . . . ___ 12.5 10.6 8.3 6.1 4.6 7.8N ew Y ork. _ __ __ 212.2 204.9 171.7 107.8 100.7 123.8Oklahoma____ ________ 24.6 21.9 16.8 9.6 10.6 30.4

P e n n s y lv a n ia --------- _ 146.4 133.7 113.0 76.8 69.8 95.7Rhode I s la n d _____. . . 11.0 9.5 8.8 8.3 8.6 16.2Tennessee_____________ 48.1 39.7 29.1 44.0 55.4 52.6Texas________ ________ 110.9 93.5 74.1 57.3 71.9 122.6U ta h __________________ 10.9 9.1 7.3 5.4 9.2 22.2

V erm ont______________ 4.5 4.3 2.5 1.4 1.1 1.3W ashington______ _ _ 50.2 38.2 29.9 26.3 55.1 45.0W isconsin_____________ 40.1 37.7 35.0 25.8 21.1 21.4W yom ing........ ............. .. 6.7 5.7 4.0 2.4 3.4 3.9

1 Data cover full- and part-time employees who worked during, or received pay for, the payroll period ending nearest the 15th of the month. They cover all site and off-site wage and salaried employees of private firms whose major activity is construction, but exclude self-employed construction workers, working proprietors, and force-account employees of nonconstruction firms and public agencies engaged in construction activities. (Force- account work is done, not through a contractor, but directly by a business or government agency using a separate work force to perform nonmaintenance construction on the agencys own properties.)

These employment series have been adjusted to levels indicated by data from the social insurance agencies.

State data are prepared in cooperation with various State agencies. For general methodology and for addresses of these State agencies, see the Bureaus monthly mimeographed publication, Employment and Pay RollsDetailed Report.

2 Includes an average of less than 1,000 employees in mining and quarrying. *

Although the Bureau uses a Nation-wide industry sample covering all States in preparing the United States total contract construction employment figure, individual State estimates are prepared by State agencies having a cooperative arrangement with the Bureau. Currently, construction employment figures are available for only the 29 cooperating States which are publishing total nonagricultural employment estimates.


CONSTRUCTION LABOR 3

average monthly employment rose by well over17,000, experienced the greatest increase in 1948. Construction contractors in Pennsylvania and Washington, which were in second and third place with regard to employment increases, took on13,000 and 12,000 additional workers, in the respective States.

The Bureaus employment estimates cover all full- and part-time wage and salaried employees. For construction employment, they cover all site and off-site wage and salaried employees of private firms whose major activity is construction. They exclude self-employed construction workers, working proprietors, and force-account employees 2 of nonconstruction firms and public agencies that engaged in construction.

All the employment estimates are based on monthly reports to the Bureau of Labor Statistics or to State agencies from a representative group of firms in each State. The base figures to which these monthly reports are applied are summaries from employers reports to unemployment compensation agencies and the Bureau of Old-Age and Survivors Insurance. Adjustments are made regularly for small firms not liable to the unemployment compensation provisions of State laws and for new firms established subsequent to base periods.3

Labor Requirements for New Construction

Because of the complexities of the construction industry, arising largely from lack of a fixed locality and steady operations, all aspects of construction employment cannot be measured in the same way. In the previous section national and State employment data have been presented, based on reports from individual construction firms to government agencies. It has been impossible to obtain from such reports the detail necessary to separate employment according to the kind of construction work performed and the skill or occupation of the workers. The moving of labor from site to site, the staggering of accessions and lay-offs among construction crews according to a projects near-

2 Force-account employees are workers hired not through a contractor, but directly by a business or government agency, and utilized as a separate work force to perform nonmaintenance construction work on the agencys own properties.

* For a more detailed explanation of the method by which nonagricultural and contract construction employment estimates are derived, see the Bureaus monthly mimeographed publication, Employment and Pay RollsDetailed Ponnrt.

ness to completion, and many other features necessarily characteristic of labor practices in construction establishments make the regular reporting of any but gross employment figures a prohibitive task for private contractors. Yet there is important need for information about the size of the labor force in various kinds of construction highway work, residential and nonresidential building construction, etc.and the skills and occupations of the workers doing the job.

Since reports to yield this information cannot be obtained from contracting establishments, the most precise source, another estimating method has been developed. This involves converting figures on the dollars spent each month for the various kinds of new construction (see tables 11 to 15) into estimated man-months of work, using a factor representing the value of work put in place per man per hour.4 For distribution by skill and occupation, data from actual field observations made on construction projects of various kinds and sizes are applied to the results.

The figures derived by this method are not employment figures in the same way as those developed from employment reports. They are, instead, an approximate measurement, in terms of number of workers, of the labor required to put in place the dollar volume of new construction reported for any period.

Since the basic data (dollar volume) cover the entire value of the work put in place, all the labor charged to the construction must be included working proprietors and the self-employed, as well as wage and salaried employees. Only the latter group are counted in the employment reports. In addition, since all new construction is covered by the figures derived from dollar volume, new projects undertaken under force account are included.5 Such projects are excluded from the employment figures, which represent employment only by construction contractors. Also contractors employees may work on all kinds of construction work, repair and maintenance projects as well as new construction but the figures on labor requirements by kind of work and occupation have been developed only for new projects.6

4 See tables 4 and 6, footnote 1, for details on the conversion method.8 See footnote 2.6 It should be cautioned that, because sufficient information is lacking for

measuring the changes, the labor requirements data assume that overhead and profit are a constant proportion of the dollar value figures, and that productivity per man-hour remains the same from month to month.

88295750-----2


4 CONSTRUCTION1948 IN R E V IE W

Different kinds of construction.New site construction put in place in 1948 required an average of more than 1,900,000 construction workers per month. Well over a quarter of a million more site jobs were provided each month in 1948, on the average, than in 1947, and requirements for construction labor were at the highest level in 6 years.

More construction site laborers were needed in 1948 for all private projects, for new nonfarm housing, and for privately owned public utilities than in any year since 1939, the earliest date for which figures are available. Private nonfarm housing claimed 36 percent of all site requirements, a larger proportion than at any other time during this 10-year period. Some of the additional labor needed for housing in 1948 came from the force which had been working on private nonresidential building projects, since construction

work on new industrial plants continued to decline from the 1946 postwar peak.

Site jobs in public nonresidential building increased by two-thirds between 1947 and 1948, largely because of continued expansion in educational facilities and in the hospital construction programs of the Veterans Administration and the Public Health Service. Within the nonbuilding sector, the demand for workers on conservation and development projects increased most in 1948. Although labor requirements for highway construction rose only slightly, jobs in that category constituted over a third of all the labor needed on public projects. But 1948 demand for highway workers still was considerably under that of 1939 and 1940.

Construction of new atomic energy facilities turned sharply upward in 1948, the number of jobs available at the site of such projects showing

T a ble 4.Number of workers required to put in place new construction, by type of construction, 1939-48 1

Average number of workers (in thousands) required per month for

Period Totalnew

construction i 2 *

Off-siteoperations

Site construction

Totalsitecon

struction

Private construction Public construction

Total

Residential

building(non-farm)

Nonresidential

building (non

farm) 3

Farmcon

struction

Publicutilities

TotalResi

dentialbuilding

Nonresidentialbuilding4

Conservation and development

Highways

All other public 5

1939................................ 1,720 200 1,520 945 498 191 92 164 575 15 244 61 178 771940.............................. 1,810 210 1,600 1,040 525 236 95 184 560 44 164 59 185 1081941 ............................. 2,230 265 1,965 1,160 550 309 106 195 805 84 315 60 159 1871942 ..................... ........ 2,260 270 2,090 590 232 115 80 163 1,500 86 875 53 101 3851943................................ 1,321 145 1,176 330 101 37 73 119 846 102 431 41 58 2141944 .............................. 710 80 630 320 78 52 45 145 310 26 145 22 40 771945................................ 792 90 702 435 95 145 38 157 267 9 128 18 43 691946.................. - ........... 1,687 210 1,477 1,195 430 470 63 232 282 56 49 31 91 55

1947 .............-............... 1,899 229 1, 670 1,320 565 353 76 326 350 30 70 40 134 76First quarter......... 1,528 195 1,333 1,065 416 382 28 239 268 54 50 32 74 58Second quarter......... 1,752 205 1,547 1,200 476 335 82 307 347 23 66 36 141 81Third quarter........... 2,158 254 1,904 1,495 627 340 135 393 409 22 76 45 180 86Fourth quarter......... 2,170 269 1,901 1, 525 742 357 60 366 376 20 90 47 141 78

1948________________ 2,205 266 1,939 1,540 700 360 80 400 399 11 117 49 137 85First quarter--------- 1,753 223 1,530 1,245 568 339 33 305 285 15 98 36 67 69Second quarter......... 2,245 271 1,974 1,575 726 343 96 410 399 10 107 48 148 86Third quarter........... 2,602 306 2,296 1,805 806 386 143 470 491 10 126 57 198 100Fourth quarter......... 2,228 278 1, 950 1,525 692 376 46 411 425 9 135 53 140 88

i Previously published as employment estimates. Available monthly from January 1939 to March 1947 and quarterly from the second quarter of 1947.

These estimates are designed to measure the number of workers required to put in place the dollar volume of new construction activity reported in tables 11 to 15. They cover the workers engaged at the site of new construction and also such oil-site workers as employees in yards, shops, and offices whose time is chargeable to new construction operations. Consequently, the estimates include not only construction employees of establishments primarily engaged in new construction, but also self-employed persons, working proprietors, and employees of nonconstruction establishments who are engaged in new construction work. They do not cover persons engaged in repair and maintenance operations.

For non-Federal construction, these estimates are derived by converting, into man-months of work, dollars spent during each month of the quarter on construction projects under way. The conversion is made by using a factor representing the value of work put in place per man per hour based on data from the 1939 Census of Construction and from periodic studies of a

large number of individual projects of various types by the Bureau of Labor Statistics. The factor is adjusted for each quarter in accordance with changes in prices of building materials, average hourly earnings of construction workers, and average hours worked per week. For Federal construction, estimates are made directly from reports on employment collected from contractors and then checked against estimates based on Federal expenditures.

For an estimate of total workers employed by firms primarily engaged in new construction, additions, alterations, repairs, and maintenance work, see tables 1 to 3.

2 Includes major additions and alterations.3 Labor requirements for nonresidential building by privately owned pub

lic utilities are included under Public utilities.4 Excludes construction workers employed at the site of atomic energy

projects, which are shown separately in table 5.8 Covers airports, water-supply and sewage-disposal systems, electrifica

tion projects, miscellaneous public service enterprises, and other projects not elsewhere classified.



almost a threefold increase from 1947. Requirements for this kind of work approached the levels of the final war year, 1945, but were less than three-tenths of the wartime peak in 1944.7 (See table 5.)

Private projects took about 80 percent of all labor at the construction site in each of the three full years following the war, 1946-48. This is in

T a b l e 5.Number of construction workers employed atthe site of atomic energy projects, monthly, 1943-48 1

Month

Average number of workers employed (in thousands)

1948 1947 1946 1945 1944 1943

Monthly average___________ 21 8 3 29 78 42

Jan u ary . 13 4 6 47 80F e b r u a r y 16 5 5 38 85March............................. ......... 17 6 3 37 87 13April.......................... .............. 18 7 2 36 92 17May........................ .................. 21 8 2 37 90 20June.......................................... 23 9 2 33 88 28Ju ly ......................................... 24 10 3 29 85 41August................ ..................... 24 10 3 29 81 50September................................ 24 11 3 28 72 54October__________________ 24 10 3 18 66 58November_________ ______ 25 10 3 13 57 65December.......................... ...... 24 11 4 9 50 73

1 These data are included with the contract employment figures shown in tables 1 to 3, but they are excluded from the labor requirement figures shown in tables 4 and 6.

contrast to 28 percent during the war peak in 1942, and somewhat above 60 percent in the preparedness period 1939-41.

Different skills and occupations.Over half the site workers on new construction in 1947-48 were skilled. Carpenters, numbering almost 425,000 in 1948, made up more than two-fifths of all skilled labor in both years. Next in numerical importance were bricklayers, followed by painters and glaziers.

More skilled labor is required for residential building than for other kinds of work. In 1947- 48, 7 out of 10 of the site crew on new housing were skilled workers, and about half of these were carpenters.

Although total site employment was about 8 percent higher in 1942 than in 1948, the demand for skilled workers was almost equal in both years. Nevertheless, partly because of the much higher volume of housebuilding, the demand for plasterers, lathers, painters, and glaziers was greater in

1 Employment at the site of atomic energy projects is shown separately (in table 5) from the labor requirement figures in tables 4 and 6 so that the latter may be comparable with the dollar volume data in tables 11 to 15, which exclude expenditures for such construction. Construction workers in this category are included, however, in the contract employment figures shown in tables 1 to 3.

T able 6.Number of site workers required to put in place new construction, by skill and occupation, selected years 1

Average number of workers per month at the site (in thousands)

Skill and occupation

1948 1947 1942 1941

On all new con

struction

On new residential building On all new

construction


construction


construction

On new residential building

Number

Percent

Number

Percent

Number

Percent

Number

Percent

Total......................... ........ ........................... 1,939 711 37 1,670 595 36 2,090 318 15 1,965 634 32

Superintendents............ .............................. 31 12 39 27 10 37 32 2 6 26 3 12Clerks............................................................ 17 2 12 14 1 7 29 1 3 19 1 5Skilled workers....... .................................... 1,000 491 49 859 411 48 1,014 196 19 986 391 40

Bricklayers............................................. 109 63 58 94 53 56 121 13 11 90 25 28Carpenters........................................... 423 242 57 366 203 55 433 104 24 448 207 46Construction machine operators.......... 55 6 11 48 5 10 66 3 5 57 5 9Electricians............................................. 37 16 43 33 13 39 47 9 19 45 18 40Lathers________ ______ ___ ____ 17 10 59 15 8 53 11 2 18 12 4 33Painters and glaziers................... .......... 85 54 64 72 45 63 76 26 34 89 52 58Plasterers.................................... ......... 47 28 60 42 24 57 32 9 28 39 18 46Plumbers and steamfitters__.............. 61 31 51 52 26 50 71 16 23 69 32 46All other.......... ................................. . 166 41 25 137 34 25 157 14 9 137 30 22

Semiskilled workers................................. . 258 83 32 224 70 31 226 14 6 205 28 14Unskilled workers........................................ 633 123 19 546 103 19 789 105 13 729 211 29

1 These estimates are designed to measure the number of workers required, by skill and occupation, to put in place the dollar volume of new- site construction accomplished during the given period of time. They cover construction employees of establishments primarily engaged in new construction, and self-employed persons, working proprietors, and employees of nonconstruction establishments who are engaged in new construction work. They do not cover persons engaged on repairs and maintenance, or employees in yards, shops, and offices of construction firms, i. e., the offsite workers shown in table 4.

For all non-Federal construction, these estimates are derived by converting, into man-months of work, dollars spent during each month on construction projects under way. The conversion is made by using a factor

representing the value of work put in place per man per hour based on data from the 1939 Census of Construction and from periodic studies of a large number of individual projects of various types by the Bureau of Labor Statistics. The factor is adjusted quarterly in accordance with changes in prices of building materials, average hourly earnings of construction workers, and average hours worked per week. For Federal construction, estimates are made directly from reports on employment collected from contractors and then checked against estimates based on Federal expenditures.

For an estimate of total workers employed by firms primarily engaged in new construction, additions, alterations, repairs, and maintenance work, see tables 1, 2, and 3.


6 CONSTRUCTION 1948 IN R E V IE W

1948. The record volume of wartime construction, however, was accomplished by the utilization of a greater proportion of unskilled help. In 1942 the number of unskilled workers employed was 25 percent higher than in 1948. Differences in labor needs are brought about not only by changes in the composition of the construction program, but also by variations in materials used and in building methods.

The somewhat more important part played by housing and the much smaller proportion of temporary construction in 1948, caused a greater need for bricklayers, plasterers, and lathers than in 1941, when total site employment was at a slightly higher level. These influences were instrumental in bringing about shortages of workers in the trowel trades in recent years which were more severe and more widespread than in the other building trades. Figures on apprenticeship reflect efforts to overcome these shortages. The number of trowel trade apprentices reported to be in training at the end of 1948 was almost 80 percent greater than at the end of 1946, compared with a 50-percent increase for all trades combined.

T a ble 7.Earnings and hours in private building construction, and index numbers, 1934-4& 1

Year

Average Index numbers (averages 1935-39=100)

Weekly earnings 2

Hoursworked

perweek

Hourlyearnings

Weeklyearnings

Hoursworked

perweek

Hourlyearnings

1934________________ $22. 97 28.9 $0. 795 81.3 89.8 90.81935________________ 24. 51 30.1 .815 86.8 93.5 93.01936________________ 27.01 32.8 .824 95.6 101.9 94.11937________________ 30.14 33.4 .903 106.7 103.7 103.11938________________ 29.19 32.1 .908 103.3 99.7 103.7

1939________________ 30. 39 32.6 .932 107.6 101.2 106.41940________________ 31.70 33.1 .958 112.2 102.8 109.41941________________ 35.14 34.8 1.010 124.4 108.1 115.31942________________ 41.80 36.4 1.148 148.0 113.0 131.11943________________ 48.13 38.4 1.252 170.4 119.3 142.9

1944________________ 52.19 39.6 1.319 184.7 123.0 150.61945________________ 53.73 39.0 1.379 190.2 121.1 157.41946________________ 56. 24 38.1 1.478 199.1 118.3 168.71947________________ 63.30 37.6 1.681 224.1 116.8 191.91948________________ 69. 77 37.3 1.868 247.0 115.8 213.2

1 The data cover all employees of contract construction firms working at the site of private projects (skilled, semiskilled, unskilled, superintendents, time clerks, etc.). Employees of construction firms employed on public projects and off-site work are excluded.

The averages are based on reports submitted monthly to the Bureau of Labor Statistics by firms whose major activity is construction. The reports provide data on the number of employees, their total gross earnings, and total hours of work (straight time and overtime combined) during the pay-roll period ending nearest the 15th of the month.

2 Hourly earnings when multiplied by weekly hours of work may not exactly equal weekly earnings because of rounding.

N ote: This series is being discontinued with publication of 1948 data. See footnote 1, tables 8 and 9.

Earnings and Hours in Construction

Gross average hourly and weekly earnings of workers engaged on private building construction rose almost without interruption in 1948, and were higher than at any previous time. When adjusted for changes in the consumers price index, however, earnings were still below the level of the final war years, 1944 and 1945.

From 1945 to 1948 the yearly average of gross hourly earnings of these workers advanced by more than 35 percent. In comparison, their gross weekly pay rose by not quite 30 percent, largely because the workweek for private construction employees had been reduced by almost 2 hours. During this same period the cost of living as reflected by the consumers price index, increased by 33 percent, so that real weekly earnings8 averaged almost 3 percent lower in 1948 than in 1945. (See chart 2.)

All groups for which data are available in private building construction shared in the postwar advance in gross earnings. The annual average of weekly earnings for employees of both general- and special-trades contractors increased about 32 percent from 1945 to 1948. Among the special trades workers, plasterers and lathers had the greatest increase in weekly pay during this period49 percent. At the same time, workers in the plumbing, heating, and air conditioning; masonry; and excavating, grading, and foundation groups had an increase of about 37 percent. The smallest proportionate increase (22 percent) was reported for those employed in painting and decorating and in the roofing and sheet-metal trades, but in 1948 the workers in those two groups received about $13 and $11 more a week, respectively, than in 1945.

In 1948, the highest weekly earnings within the special trades, an average of $84.25 for the year, went to electrical workers. These employees have consistently maintained their position as the highest paid group of employees in private building construction, partly because they have had a longer average workweek. Roofing and sheet-metal workers were at the bottom of the scale in 1948, their weekly earnings averaging $62.

8 Average weekly earnings in current dollars divided by the consumers price index on base of 1935-39=100. The CPI was not adjusted for income tax deductions.



C hart 2 . A v e ra g e W e e k ly Earnings in P rivate B uild ing Construction

Construction workers earnings, as contrasted with earnings of workers in many other industries, are affected to a marked degree by the wide fluctuation and intermittent nature of employment in the industry. In 1944 and 1945, when the war construction program had tapered off and real earnings were at peak for construction workers, average monthly employment was at the lowest level since 1939 (the earliest period for which monthly employment data are available). Even in periods of accelerating activity, such as in the years following World War II, average monthly employment may fluctuate by as much as half a million or more workers within a single year. Differences between low and peak employment in 1947 amounted to 510,000 employees, and in 1948 to more than 590,000.

From January through December 1948, gross earnings showed an almost constant increase for all construction workers. Combined weekly earnings for employees of all types of contractors (those engaged on private and public projects as well as site and off-site operations) averaged 11 percent

more at the end of the year than at the beginning (table 9). The highest paid group, those working for special trades contractors, had the smallest proportionate gain (8 percent), while the nonbuilding construction groups showed the greatest increase (15 percent).

Hourly earnings averaged 8 or 9 percent higher in December than in January for each of the major groups. The length of the workweek, however, changed very little during the year, except for employees of contractors in nonbuilding construction. For that group the average workweek varied by more than hours from winter low to late-summer peak. This variation in average hours was probably due to the great proportion of outside jobs in the nonbuilding sector, especially on highway and street construction, which required completion under favorable weather conditions.

A rough idea of the differences in earnings and hours on private construction, as compared with public, may be obtained from the data appearing in tables 7 and 10. Average hours worked per week were slightly higher in 1948 on federally financed projects than on private construction jobs. Nevertheless, hourly pay was so much lower that gross weekly earnings on Federal work averaged almost 20 percent under those on private work.

This should not be construed to mean that workers receive lower pay when employed on public than on private jobs of the same kind. Variations result primarily from differences in the type of labor required. For example, the large-scale operations common to such construction as highways, bridges, sewers, irrigation, and flood-control projects, which are mainly public, permit the utilization of a greater proportion of unskilled and semiskilled workers than do smaller operations; this results in lower average earnings. Furthermore, since contractors on large-scale operations can guarantee comparatively longterm employment, they may be able to employ workers at slightly lower rates of pay than otherwise would be acceptable.

Hours and earnings series.Averages of weekly earnings, weekly hours, and hourly earnings of workers employed by construction contractors are based on reports received by the Bureau from general and special trades contractors (about12,000 in 1948) who report data on man-hours



T able 8.Earnings and hours of workers employed by construction contractors on private projects, by type of contractor.monthly, 1947-48 1

Year and month

Alltypes

ofcontractors

Building construction contractors engaged in- Nonbuilding construction contractors engaged in

Alltypes

ofbuild

ing

General

building

Special tradesAll

typesof

non- build

ing construction

Highwayand

streetcon

struction

Heavycon

struction

Other non-

building construction

Allspecial

trades2

Plumbing,

heating, and

air condition

ing

Paintingand

decorating

Electrical

Masonry

Plasteringandlathing

Carpentering

Roofingand

sheetmetal

Excavating,grading,and

foundation

Average weekly earnings 3

1947: Average.......... $62.85 $63.30 $59.39 $67.97 $69.66 $63.37 $77.78 $62.39 $73.15 $63.33 $57.81 $60.12 $60.87 $56.77 $63.02 $58.27January------------ 59.38 59. 97 56.49 64.00 67.16 58.83 73.85 56.49 69.81 58.20 51.49 53.98 56.67 52.23 57.94 56.61February---------- 58. 67 58.92 54.91 63.65 66.65 58.75 74.95 52.41 66.84 57.69 50. 59 55.00 57.49 53.83 59.15 55.44March------- ------ 60.63 61.23 58.02 64.92 66.89 60.10 75. 75 57.37 69.15 62. 98 53. 67 58. 36 57.82 53.72 58. 98 57.83April.......... .......... 60.14 60.57 56.38 65.43 67.37 60.87 76.31 57.36 72.40 61.01 54.02 56.07 58.28 52.82 60.48 57.03May___________ 61.87 62.26 57.95 67.15 68. 24 63. 77 76.73 62.01 74.95 62.67 57.43 59.70 60. 22 54.23 62.83 58.60June...................... 62.25 62. 71 58. 55 67.69 67.73 63. 52 77.81 63.54 73. 67 62.29 58.13 60.48 60.17 56. 92 61.34 60.09July ....... ........ 63.26 63.60 60.08 67.99 68.63 63. 52 77.17 63. 26 73.14 61.97 59. 58 60.33 61. 76 58.18 64.09 58.49August------------- 64.36 64. 71 61.33 69.01 69.60 66.32 76.96 65.89 75. 61 65.99 60.86 63.12 62.82 58. 57 65. 53 58.92September-------- 65.09 65.36 61.16 70.61 71.19 66.13 79.92 66.68 76.05 65. 75 63. 27 64. 27 63.85 59.68 66.84 58. 26October........... 66.03 66.36 62.25 71.32 71.98 67.29 81.87 67.19 75.60 66. 55 62.48 63. 51 64.53 60. 66 67.11 60.08November............ 64.02 64. 55 60.55 69.36 71.90 63. 56 79.64 65.39 73.27 66.50 57.76 60.08 61. 67 57. 55 64.03 58.50December______ 66.47 67.31 62.86 72.64 76.61 65.33 81.20 66.69 76.63 64.94 60.64 63.33 62.83 60. 21 65.24 58.35

1948: Average......... 69.67 69. 77 66.26 74.34 77.24 69. 52 84. 25 69.16 79.79 68.35 62.00 66. 47 69.14 65.88 71.64 66.41January------------ 65. 72 66. 26 62.05 71.42 75.79 65.79 81.85 61.51 75.84 63.94 56. 54 63. 79 63.28 61.25 65. 57 58.14February............ 65.95 66.04 62.26 70.78 74.17 65.03 81.80 59.50 74.81 61.60 55.38 64.37 65. 42 60. 96 68.78 61.24March-------------- 66. 65 66.80 63.28 71.29 74.01 66.80 82.98 61.38 75.10 62.93 55.86 61.57 65.85 60. 71 68.79 62.89April.................... 67.23 67.29 63. 62 72.03 74.64 68.29 81.37 64.61 76.61 68.41 58.33 63.40 66. 92 61.63 69. 53 65.08May........... .......... 67.92 68.16 64.74 72.73 75. 55 69. 76 81.70 66.91 79.22 69. 55 59.89 65.72 66.72 63.09 69.30 63.86June............... ...... 70.57 70.49 67.00 75.14 79.03 70.27 82.60 71. 21 83. 54 70.64 63.15 68.45 70.93 67. 53 74.06 66. 61July___ ____ - 71.53 71.38 67.90 75.88 78.89 71.20 84.31 74.78 83.12 70.28 64.42 66.63 72. 27 69. 73 74.42 69.23August................ 71. 99 71.93 68.47 76. 57 79.81 71.27 85.63 73.83 82.07 70. 65 65.36 69.11 72.26 68.85 75.06 69.02September_____ 72.12 72.06 68.56 76.67 78.97 71.67 85.69 73.97 84.29 70.50 66.27 69. 77 72.42 69.22 74.90 69.88October.............. 71.71 71.69 68.10 76.33 77.97 70. 72 87. 62 73. 74 82.28 69. 77 65.15 68.37 71.82 68.63 73.85 70.23November............ 70.46 70.73 67.25 75.25 76.44 69.92 86.72 72.96 77.66 68.99 65.17 68. 61 69.25 63. 27 72.05 67.58December............ 72.85 73.32 70.45 77.15 81.26 71.32 88.79 70. 51 80.52 70.10 65. 22 65.85 70.47 65.80 72.67 69.94

Average hours worked per week

1947: Average.......... 38.0 37.6 37.0 38.4 39.2 36.7 40.3 36.4 37.5 38.5 36.7 37.8 39.5 39.1 39.5 40.1January. .............. 37.9 37.6 37.2 38.1 39.9 35.9 40.2 34.9 37.9 37.7 34.9 36.3 39.0 37.3 39.1 40.5February. ........... 37.4 36.9 36.2 37.6 39.3 36.3 40.8 32.4 36.3 37.8 34.1 37.2 39.9 39.1 40.2 39.7March................. 38.3 38.0 37.9 38.2 39.2 37.1 40.5 35.1 37.9 39.6 35.8 37.7 39.3 38.0 39.2 40.5April..................... 37.5 37.1 36.4 38.0 38.7 36.6 40.5 34.6 38.2 37.9 36.0 36.5 39.0 37.4 39.3 39.6May...................... 38.0 37.6 36.8 38.5 38.7 37.3 40.4 37.2 38.9 38.9 37.2 38.5 39.7 38.6 40.0 40.2June _________ 38.2 37.8 36.9 38.7 38.9 37.4 40.6 37.2 38.2 38.3 37.6 37.9 40.0 40.4 39.6 40.8July...................... 38.4 38.0 37.6 38.4 38.7 36.9 39.7 37.3 37.5 37.7 37.2 38.1 40.3 40.6 40.1 40.5August................. 38.6 38.2 38.0 38.5 38.9 37.4 39.3 38.2 38.0 39.5 37.4 39.1 40.2 40.1 40.2 40.5September_____ 38.3 37.9 37.2 38.9 39.1 37.4 40.3 38.1 38.1 39.0 37.9 39.8 40.2 39.9 40.1 40.9October........ ...... 38.5 38.1 37.4 38.9 39.2 37.6 40.8 37.7 37.4 38.9 38.4 38.8 40.3 40.2 40.0 41.1November______ 36.9 36.6 35.8 37.5 38.4 35.0 39.9 36.0 35.3 38.4 35.4 36.7 38.2 37.7 38.1 38.9December.......... . 38.0 37.9 37.1 38.9 40.6 36.0 40.6 36.3 36.5 37.8 37.1 37.8 38.4 38.4 38.4 38.2

1948: Average_____ 37.7 37.3 36.8 38.0 39.2 36.0 40.0 35.4 36.6 37.8 36.3 38.5 39.6 39.8 39.6 39.8January................ 37.3 37.2 36.4 38.2 40.7 35.7 40.7 33.0 36.7 36.5 34.5 37.7 37.8 37.9 37.6 38.1February______ 37.0 36.6 36.1 37.3 39.1 34.7 40.0 31.6 35.9 35.2 33.7 37.3 38.5 37.4 38.6 39.0March .................. 37.4 37.1 36.7 37.5 39.0 35.7 40.6 32.6 36.0 35.4 34.4 36.4 38.9 37.7 39.3 38.9April..................... 37.5 37.0 36.5 37.8 38.9 36.3 39.7 34.3 36.6 38.0 35.3 37.9 39.6 38.5 39.9 39.8May...................... 37.5 37.1 36.5 37.9 39.1 36.6 39.7 34.8 37.1 38.8 35.9 39.3 39.1 38.8 39.4 38.8June...................... 38.5 37.9 37.4 38.6 40.0 36.4 39.8 36.2 38.2 39.4 36.8 40.4 40.9 40.8 41.5 39.5July---------- ------ 38.4 37.8 37.2 38.5 39.2 36.8 40.3 37.8 37.4 39.2 37.1 38.6 41.2 42.2 41.0 40.6August................. 38.4 37.8 37.4 38.5 39.1 36.5 40.3 37.0 36.8 39.3 37.7 39.5 40.9 41.6 40.6 40.7September........... 38.1 37.5 37.0 38.2 38.7 36.6 39.7 36.9 37.3 38.4 37.8 39.5 40.7 41.3 40.4 40.9October................ 37.9 37.4 36.8 38.1 38.5 35.7 40.0 36.6 36.6 37.6 37.3 38.8 40.3 40.2 40.0 41.2November............ 37.0 36.7 36.0 37.5 38.0 34.9 39.4 36.1 34.7 37.2 37.2 38.4 38.4 37.6 38.3 39.4December______ 38.0 37.9 37.7 38.1 39.9 35.8 40.5 35.3 36.0 37.9 36.5 37.4 38.4 38.7 37.6 39.9

See footnotes at end of table.



T able 8.Earnings and hours of workers employed by construction contractors on private projectsy by type of contractor,monthly, 1947-48 1 Continued

Year and month

Alltypes

ofcontractors

Building construction contractors engaged in Nonbuilding construction contractors engaged in

Alltypes

ofbuild

ing

General

building

Special tradesAll

typesof

non- build

ing construction

Highwayand

streetcon

struction

Heavycon

struction

Other non-

building construction

Allspecial

trades2

Plumbing,

heating, and

air condition

ing

Paintingand

decorating

Electrical

Masonry

Plasteringandlathing

Carpentering

Roofingand

sheetmetal

Excavating,grading,and

foundation

Average hourly earnings

1947: Average.......... $1.654 $1.681 $1.603 $1. 772 $1.779 $1.724 $1.930 $1.716 $1.951 $1.645 $1.577 $1,590 $1.539 $1.454 $1.594 $1.454January................ 1.568 1. 594 1.518 1.680 1.681 1.637 1.838 1.618 1.842 1.544 1.477 1.487 1.451 1.401 1.482 1.398February--......... 1. 569 1.598 1.516 1.691 1.694 1.619 1.836 1.619 1.840 1. 528 1.483 1.477 1.441 1.378 1.472 1.395March-................ 1.585 1.610 1.531 1.699 1.705 1.619 1.872 1.637 1.822 1. 591 1.497 1. 550 1.473 1.412 1.504 1.429April....... .......... 1. 605 1.632 1.550 1. 723 1.739 1.662 1.885 1.656 1.894 1.611 1.499 1.537 1.495 1.411 1.538 1.441May_.................... 1. 627 1.655 1.575 1. 742 1.761 1.712 1.899 1. 668 1.926 1.612 1. 542 1.552 1.515 1.404 1.571 1.459June...... ............... 1.631 1.661 1.585 1. 749 1.739 1.697 1. 917 1. 706 1.927 1. 625 1.547 1. 594 1. 504 1.408 1. 548 1.474July...................... 1.648 1. 676 1.596 1.772 1.774 1.722 1.946 1.697 1.950 1.645 1.602 1.583 1.533 1.434 1. 597 1.445August................. 1.668 1. 694 1.614 1.794 1. 791 1. 774 1.960 1. 727 1.992 1.670 1.629 1. 616 1. 562 1.459 1. 632 1.454September........... 1.699 1. 723 1.646 1.816 1.819 1.767 1.985 1. 752 1.995 1.684 1. 669 1. 613 1.587 1.495 1.666 1.425October....... ........ 1. 716 1. 743 1. 665 1.833 1.836 1.792 2.006 1. 781 2. 019 1.710 1.626 1.638 1.602 1. 510 1. 676 1.461November______ 1.736 1. 765 1. 690 1.851 1.872 1.818 1.995 1. 817 2. 075 1. 733 1. 631 1.636 1. 615 1. 528 1.680 1.502December--------- 1.748 1. 774 1.695 1.865 1. 887 1.812 2. 000 1.836 2.100 1. 718 1.634 1. 676 1. 638 1. 570 1.697 1. 528

1948: Average.......... 1.846 1. 868 1.800 1.955 1.971 1.929 2.104 1.957 2.179 1.807 1.709 1. 727 1.745 1.654 1.811 1.669January............... 1. 761 1. 781 1.707 1.867 1.862 1. 840 2. 012 1.862 2. 069 1. 750 1.638 1. 690 1.676 1. 618 1. 745 1.524February........... 1. 788 1.805 1.727 1.898 1.895 1.872 2. 047 1.881 2. 087 1. 752 1.643 1.725 1. 700 1.629 1.781 1.570March.................. 1.784 1.803 1.724 1.900 1.897 1.870 2. 016 1.883 2.087 1.778 1.622 1.689 1.692 1.609 1.750 1.615April....... ............. 1.795 1.817 1.745 1.907 1. 919 1.880 2. 048 1.885 2. 094 1.799 1.652 1.672 1.691 1.601 1.743 1.637May........ ............. 1.813 1.835 1. 772 1. 917 1.933 1.906 2. 056 1.923 2.137 1.795 1.669 1.671 1.706 1.627 1.760 1.647June...... ............... 1.835 1.858 1.789 1.948 1.976 1.930 2.075 1.967 2.185 1.794 1.717 1.695 1.735 1.656 1.785 1.685July...................... 1. 865 1. 890 1.826 1.972 2.014 1.934 2. 090 1.977 2. 223 1.795 1.736 1.724 1. 756 1. 652 1.814 1.705August................. 1. 876 1.901 1.833 1.991 2. 041 1.951 2.126 1.994 2.231 1.800 1. 734 1.749 1.768 1.657 1.847 1.694September......... - 1.894 1.919 1.853 2.005 2.042 1.959 2.159 2. 005 2. 258 1.837 1.753 1. 768 1. 779 1.676 1.854 1.708October________ 1.894 1.919 1.852 2. 005 2. 026 1.980 2.191 2. 015 2. 250 1.854 1. 749 1.760 1.780 1. 707 1.846 1.704November_____ 1.906 1.929 1.867 2. 009 2. 010 2. 001 2.203 2. 022 2. 238 1. 855 1.751 1.789 1.803 1.684 1.881 1. 717December______ 1.918 1.935 1.869 2. 023 2. 037 1.995 2.194 2. 000 2. 237 1.847 1.788 1. 761 1.833 1. 699 1.931 1.754

1 The data cover all employees of contract construction firms working at the site of private projects (skilled, semiskilled, unskilled, superintendents, time clerks, etc.). Employees of construction firms employed on public projects and off-site work are excluded.

This series is being discontinued with the publication of 1948 data, and is being replaced with the series shown in table 9. The new series covers all employees engaged on site or off site in actual construction work (including preassembly and precutting operations) on both private and public projects. However, when data from both series are compared for the group All types of building contractors, the extent of variation is small enough that the two series may be regarded as continuous in this one respect. A more detailed explanation of the differences in the series

worked, number of workers, and total payroll for the pay period ending nearest the fifteenth of each month. The pay period is 1 week, except for federally financed construction jobs, in which case data are reported for accounting months and weekly averages are not computed until the end of the year (see footnote 1, table 10).

Average weekly earnings are derived by dividing aggregate payroll by the number of workers; average hourly earnings are the result of payroll divided by man-hours; and average hours per week are man-hours divided by number of workers. The averages are influenced by the relative degree of activity in the industry and by changes in the amount of part-time or overtime work performed, labor turn-over, absen

and reasons for the change-over are presented in an article, Revised Series: Hours and Earnings, Contract Construction Industry, Monthly Labor Review, June 1949 (pp. 666-668).

The averages are based on reports submitted monthly to the Bureau of Labor Statistics by over 14,000 firms whose major activity is construction. The reports provide data on the number of employees, their total gross earnings, and total hours of work (straight time and overtime combined) during the payroll period ending nearest the 15th of the month.

2 Includes types not shown separately.3 Hourly earnings when multiplied by weekly hours of work may not

exactly equal weekly earnings because of rounding.

teeism, and so forth. Moreover, some of the variation in average earnings is attributable to changes in the size and composition of the monthly reporting sample.1 9

Historical data on hours and earnings are available for privately financed site building construction for the years 1934 through 1939. Additional data became available in 1940, making it possible to provide separate averages for certain special trades contractors. Nonbuilding construction (highways, bridges, tunnels, dams, etc.) is included beginning with February 1946. Figures

9 For a detailed description of the Bureaus gross average hourly and weekly earnings series for manufacturing and nonmanufacturing industries, including construction, see the Bureaus mimeographed publication, Hours and EarningsIndustry Report.


10 CONSTRUCTION 1948 IN REV IE W

T a ble 9. Earnings and hours of contract constructionworkers, by type of employing contractor, monthly, 1948 1

MonthAll types

of contractors

Building construction contractors Nonbuilding

construction contractorsAlltypes

Generalbuilding

Specialtrades


Annual average_______ __ $68. 25 $68.85 $64. 64 $73. 87 $66.61J a n u a r y _______ ,, 64. 29 65. 51 60. 65 71.06 60.48February ______ _ _, 64. 45 65.16 60. 62 70. 30 61.96March____ ______ _ 65. 22 65.87 61. 52 70. 91 63. 09April____________ _ 65. 91 66. 45 61.80 71.86 64. 30May_____ _________ 66. 28 67. 22 63.09 72. 23 63.69June__ _ ___ 68. 88 69. 53 65. 49 74. 44 67. 28July________________ 69.84 70. 47 66. 38 75. 32 68. 33August _________ 70.47 70. 91 66. 87 75. 88 69. 40September_______ __ 71.07 71.29 67.07 76. 23 70. 56October___ _______ 70. 51 70. 59 66. 53 75. 51 70. 40November___________ 68. 28 69.39 64. 97 74. 72 65.31December___________ 71.65 72. 33 68. 60 76.86 69.64


Annual average__________ 38.1 37.3 36.6 38.0 40.6January _ _ ____ _ 37.3 37.1 36.1 38.2 38.1February _______ _ 36.7 36.4 35.6 37.2 37.8March, ___ ______ 37.3 36.9 36.3 37.5 38.8April., _____________ 37.7 36.7 36.1 37.6 40.2May_______ ______ 37.8 37.0 36.3 37.9 39.8June______ _______ 38.9 37.9 37.3 38.5 41.7July________________ 38.9 37.8 37.2 38.5 41.8August__ ________ . 39.1 37.8 37.3 38.4 42.3September________ _ 38.9 37.6 37.0 38.3 42.4October,_ _______ __ 38.6 37.3 36.7 38.0 42.1November.., _______ 37.1 36.4 35.6 37.3 39.1December, ____ _ 38.5 37.8 37.4 38.1 40.7


Annual average________ . $1. 790 $1. 848 $1. 766 $1. 946 $1.639January____ ________ 1.722 1.766 1. 681 1.863 1. 587February ____ 1.757 1.791 1.703 1.890 1.638March ____________ 1.749 1.786 1.695 1.894 1.628April__ _ ________ 1.751 1.804 1.713 1. 910 1.600May________________ 1.756 1.815 1.740 1.908 1.600June_______ _____ 1.770 1.836 1. 756 1. 935 1.614July_______ ______ 1.793 1.862 1.785 1.956 1.634August, _ . 1.803 1.874 1.793 1.976 1.639September, __ _ _ 1.827 1.895 1.813 1. 992 1.663October_____ _ ___ 1.826 1.892 1. 815 1.988 1.672November_____ ___ 1.840 1.906 1. 824 2.006 1.671Decem ber..,___ _ , , 1.862 1.915 1.835 2.017 1.712

1 The data cover all employees of contract construction firms engaged on site or off site in actual construction work (including preassembly and precutting operations) on both private and public projects. All nonconstruction workers employed by these firms, on or off the site, are excluded. The series shown in tables 7 and 8 (which is being discontinued with publication of 1948 data) covers only site workers of construction firms employed on private projects. However, when data from both series are compared for the group All types of building contractors, the extent of variation is small enough that the two series may be regarded as continuous in this one respect. A more detailed explanation of the differences in the series and reasons for the change-over are presented in an article, Revised Series: Hours and Earnings, Contract Construction Industry, Monthly Labor Review, June 1949 (pp. 666668).

The averages are based on reports submitted monthly to the Bureau of Labor Statistics by over 14,000 firms whose major activity is construction. The reports provide data on the number of employees, their total gross earnings, and total hours of work (straight time and overtime combined) during the payroll period ending nearest the 15th of the month.

1 Hourly earnings, when multiplied by weekly hours of work, may not exactly equal weekly earnings because of rounding.

covering workers engaged solely on Federal construction are shown in a separate series, dating from 1935.

Beginning with 1948 data, the series on private construction was replaced by one covering both public and private contract construction. In addition, the new series includes construction workers engaged in site and off-site operations, and excludes employees of the firm who are engaged on non construction work. The previous series covered all site workers, including job superintendents, timekeepers, and other clerical workers.10 The purpose of the revision is to bring the series into closer alinement with those for production workers in manufacturing industries and to recognize changing methods of operation in the construction industry.

The revision resulted, of course, in lack of historical continuity, but with one exception that is, the two series may be regarded as continuous for total building construction. When the two series are compared for each month from January through December 1948 (the only period covered by both), it is revealed that average hourly earnings in building construction for private projects alone are consistently about 2 cents above those for private and public projects combined. For other categories, the differences are wider in range. Hourly earnings on private work exceed private plus public earnings by 3 to 7 cents for all types of construction; they were 0.3 to almost 2 cents higher for the special trades group, 2 to 4 cents higher for employees of general contractors, and 6 to 13 cents higher in non building construction. Among the special trades, differences in the two series are not consistent. For some months the revised series exceeds the previous series, and for other months their relative positions are reversed.

Offsetting the absence of continuity, the revised series has these advantages: (1) it presents true averages reflecting changing conditions; and (2) it makes possible the comparison of earnings of workers on construction with those of workers in other industries.

10 A detailed account of the changes made in the series on private construction is presented in an article, Revised Series: Hours and Earnings, Contract Construction Industry, Monthly Labor Review, June 1949 (pp. 666-668).



T a b l e 10.Average weekly hours and average weekly and hourly earnings on Federal construction, by type of construction,1947-48 1

Type of construction




1948 1947 Percent of change 1948 1947Percent

of change 1948 1947Percent

of change

All ty p e s ........... ................... ................................. ......

Residential building___________________________

38.3 36.6 +4.6 $56.77 $50.27 +12.9 $1.484 $1.372 +8.2

8 32.230.0 39.8 41.2 39.642.0 34.4

33.128.337.741.7 40.042.7 34.9

3 55.29 52.73 56.28 59.42 67.05 55.70 55.92

50.72 44. 55 48.82 55.32 61.70 51.79 50.67

31.716 1.758 1.415 1.442 1.695 1.326 1. 626

1.530 1.572 1.295 1.325 1.541 1.214 1.451

Nonresidential building........................... ......................Highways_________________ ___________________Conservation and development__________________

Reclamation. __________ ____________________River, harbor, and flood control............................

All other < .................................................. ...................

+6.0+5.6-1 .2-1 .0-1 .6-1 .4

+18.4+15.3+7.4+8.7+7.5

+10.4

+11.8+9.3+8.8

+10.0+9.2

+12.1

1 Computed on an annual average basis by dividing reported annual pay rolls and number of man-hours worked during the year by 52. This method is used primarily because hours and earnings on Federal construction projects are reported by accounting months, rather than by calendar months. Thus, all contractors do not report for uniform pay periods during any given month; some may include data for 4 weeks and others for 5. In addition, averages in a given month are affected substantially by shifts in the geographic distribution of projects under way, especially when the number of projects in a category is small. Consequently, average hours and earnings cannot be computed accurately on a current weekly basis. Most of the bias resulting from both the reporting procedures and the project location, however, is removed when data for the year as a whole are used

to obtain averages. Reports are received monthly from agencies carrying on most Federal construction work and, for some work, directly from the construction contractors.

2 Hourly earnings when multiplied by weekly hours of work may not exactly equal weekly earnings because of rounding.

3 Covers first 6 months only. Beginning with July 1948, no averages were computed for Residential building separately because of the small number of projects under construction and their limited geographic distribution. Data on residential building for the last 6 months of 1948 are included in the category All other.

* Covers sewage-disposal and water-supply systems, electrification projects, airports, and other construction not elsewhere classified.

Construction Volume

Expenditures for New Construction

Investment in new construction in the third full postwar year again showed a significant increase over the previous year, and continued to be an important influence in lifting national income and employment levels. Both physical volume and dollar expenditures increased from 1947 to 1948the former by nearly 20 percent, the latter by more than 30 percent to 18% billion dollars. As a share of gross national product, new construction increased from 6 percent in 1947 to 7 percent in 1948.

Dollar outlay, because of the combined effects of a large volume of new projects and higher price levels, reached an all-time high in 1948. Physical volume (measured in terms of 1939 dollars), however, was still below the previous peacetime and wartime peaks. (See table 13.)

Increases in practically all types of construction contributed to the 1948 record total of expenditures. While the increase in outlays over those for 1947 was somewhat more in the public sector (34 percent) than in the private (30 percent), private funds still accounted for over three- fourths of the total for the year. Within the public sector, States, counties, and municipalities

stepped up their construction investment by 46 percent, as against a 13-percent rise in expenditures by the Federal Government.

Expenditures for new nonfarm housing were well over a third higher than in 1947, but almost half of this increase was due to higher costs. The 7 billion dollars homebuilders spent for new dwellings in 1948 represented about 50 percent of the private construction total.

Commercial construction was the dominant factor in the 14-percent increase over 1947 in the dollar volume of nonresidential building. The growth of new neighborhoods and continued low vacancy rates contributed in large measure to the expansion in commercial building activity.

Industrial building, in contrast, was 18 percent under the 1947 level, after spurting in the early postwar years. This does not mean that industry's over-all capital expenditure had declined commen- surately. Expenditures for new equipment, prices of which had risen considerably less than construction costs in relation to prewar levels, claimed a larger share of business' investment dollar.

The increased volume of expenditure on new plants by privately owned public utility firms more than offset the decline in new industrial plants. But in 1948, as in the entire postwar

882957- 50- -3



T able 11. Expenditures for new construction, by type of construction, selected years 1Expenditures (in millions of dollars)

Type of construction1948 1947 1946 1945 1942 1941 1940 1939 1933 1929

Total new construction *_______________________ $18,775 $14,324 $10,464 $4,808 $13,412 $10,490 $7,042 $6,307 $2,376 $9,873Private construction______________ ___________ 14,563 11,179 8, 253 2,716 3,007 5,426 4,390 3,808 1,012 7 476Residential building (nonfarm)______________ 7,223 5,260 3,183 684 1,315 2,765 2,355 2,114 278 2 797Nonresidential building (nonfarm) * .............. __ 3,578 3,131 3,346 1,014 635 1,486 1,028 785 404 2*822Industrial.......... ........ ......................... .......... 1,397 1,702 1,689 642 346 801 442 254 176 949Commercial............ .......... ...... ....................... 1,224 835 1,110 199 150 400 342 287 127 1 097Warehouses, office and loft buildings__ 323 216 309 52 57 114 85 76 41 581Stores, restaurants, and garages______ 901 619 801 147 93 286 257 211 86 516Religious........ .................. .................... .......... 236 118 72 26 29 59 56 46 20 139Educational____ _____________________ 239 164 115 28 23 55 47 37 14 113Social and recreational__________________ 211 92 121 24 28 68 63 94 32 164Hospital and institutional___ ___________ 116 107 81 34 27 44 31 29 9 98Hotel................ .................. ................ ........... 43 43 52 11 14 27 23 17 8 199Miscellaneous___ _____________________ 112 70 106 50 18 32 24 21 18 63Farm construction_________ ______________ < 500 4 450 4 350 191 271 303 236 226 69 279Residential____________ ______________ 275 250 212 116 144 174 127 120 43 147Nonresidential________________________ 225 200 138 75 127 129 109 106 26 132Public utilities__ ________________________ 3, 262 2,338 1,374 827 786 872 771 683 261 1,578Railroad...... ................................................... 379 318 258 264 197 187 167 137 94 510Local transit................ ................................. 60 56 35 18 12 30 50 54 21 82Pipeline........................................................... 150 121 63 42 80 60 30 35 7 97Electric light and power.................. ............. 1,260 793 443 245 255 305 311 303 59 350Gas.................................................................. 700 540 270 141 87 111 91 61 35 185Telephone and telegraph________________ 713 510 305 117 155 179 122 93 45 354Public construction..................................................... 4,212 3,145 2,211 2,092 10,405 5,064 2,652 2,499 1,364 2,397Residential building______________________ 85 186 369 71 545 430 200 65 o 0Nonresidential building ............................. ........ 1,057 505 325 652 3,653 1,584 556 859 205 622Industrial_____________________ _____ 20 25 84 470 3,437 1,280 164 23 2 (7)Commercial____________ _____ ________ (8) (8) 4 4 6 21 34 32 4 (7)Public administration.................................... 73 25 16 15 47 89 133 204 101 103Educational________________ _______ 567 275 101 59 116 135 132 418 43 367Social and recreational__________________ 58 17 11 9 5 15 18 47 0 36Hospital and institutional................. ........... 219 81 85 85 32 34 50 114 43 95Miscellaneous_________________________ 120 82 24 10 10 10 25 21 0 21Military and naval facilities______ __________ 137 204 188 690 5,016 1,620 385 125 36 19Highway___________ _____________________ 1,585 1,300 778 386 616 800 882 867 809 1,254State_________ ______________________ 1,130 895 510 226 435 552 561 505 522 557County________________________ ____ 287 245 156 89 95 117 137 142 105 257Municipal______ ______________________ 130 120 89 63 69 105 154 185 138 429Federal9.......................................................... 38 40 23 8 17 26 30 35 44 11Sewage disposal...... ............. ................................. 269 177 97 37 39 48 67 82 34 127Water supply___________________ _____ 212 154 97 60 100 120 127 80 47 126Miscellaneous public service enterprises 10____ 108 117 87 55 36 63 90 91 61 150Conservation and development____________ 597 386 240 130 350 354 310 310 168 86Bureau of Reclamation___ _____________ 140 115 60 39 60 79 74 72 26 8Army Engineers______________ ________ 383 222 147 63 150 159 158 157 102 59Tennessee Valley Authority____________ 42 30 17 18 131 83 38 32 5 oOther________________________________ 32 19 16 10 9 33 40 49 35 19All other public 11_____ __________________ 162 116 30 11 50 45 35 20 4 13

1 Construction expenditures represent the monetary value of the volume of work accomplished during the given period of time. These figures should be differentiated from valuation data reported in the section on city building, pages 38 to 49, and from data on value of Federal contract awards, pages 17 to 25.

Estimates of expenditures for 1915 through 1938 were made by the Office of Domestic Commerce, U. S. Department of Commerce, except for the nonfarm residential building segment, which was estimated by the Bureau of Labor Statistics. For 1939 and subsequent years, the estimates were prepared jointly by the Bureau of Labor Statistics and the Office of Domestic Commerce.

* Includes major additions and alterations, except in the case of private residential building, which covers only new construction.

Expenditures by privately owned public utilities for nonresidential building are included under Public utilities.

4 A study by the Bureau of Agricultural Economics, U. S. Department of Agriculture, of these farm construction estimates is being made in the light of additional information that has recently become available. Preliminary

results indicate that the level of the estimates has been considerably understated in the postwar years. The present series has not been revised, however, pending completion of the study.

fl Expenditures for nonresidential building at military installations are included under Military and naval facilities.

6 Excludes expenditures to construct facilities used in atomic energy projects.

7 Public industrial and commercial building not segregable from private prior to 1933, but the amount involved is negligible.

8 Less than $500,000.9 Includes, primarily, roads in national parks and forests. Federal con

tributions to State and local programs are included in those categories, which are shown above according to government ownership.

10 Covers, primarily, publicly owned electric light and power systems and local transit facilities.

11 Covers construction not elsewhere classified, such as airports, navigational aids, monuments, etc.



T able 12. Expenditures for new construction, in 1939 prices, by type of construction, selected years 1Expenditures (in millions of 1939 dollars)

Type of construction1948 1947 1946 1945 1942 1941 1940 1939 1933 1929

Total new construction2 ....................................... $8, 969 $7, 538 $6, 556 $3, 500 $10,390 $9,339 $6,858 $6,307

3,808 2,114

785 254 287 76

211 244 226 120 106 683 137 93

453 2,499

65 859 23

418 114 304 125 867 162 91

310 20

$2, 728

1, 267 358 531 229 167 52

115 135 82 51 31

296 101 49

146 1,461

2603

5757

14347

76610173

2095

$9, 257

Private construction.......................................... ........Residential building (nonfarm)....... ............. ......Nonresidential building (nonfarm) 8___............

Industrial................. ............. .......................Commercial....... .............. ............................ -

Warehouses, office and loft buildingsStores, restaurants, and garages......... .

Other nonresidential building................ ......Farm construction............................... .................

Residential-----------------------------------------Nonresidential------------------------------------

Public utilities----- ----------------- ------------------Railroad------- ------------------- ------------------Telephone and telegraph---------- -------------Other public utilities............. ...... .................

Public construction....... ..................................- ..........Residential building. ---------------------------------Nonresidential building4...................... .............-

Industrial........... ........ ....................... ..........Educational__________________________Hospital and institutional........................ .Other nonresidential......................................

Military and naval facilities_----------------------Highway.--------------------------------------- -..........Sewage disposal and water supply....... ...............Miscellaneous public service enterprises 7.........Conservation and development.......................All other public 8---------------------------------------

6,982 3,355 1,528

603 535 165 370 390 187 98 89

1,912 195 354

1,363 1,987

38 432

8 232 89

103 62

720 256 74

318 87

5,848 2,698 1,500

817 406 120 286 277 179 95 84

1,471 177 273

1,021 1,690

99 234 13

126 38 57

102 667 197 86

236 69

5,167 1,977 2,006

960 708 204 504 338 180 106 74

1,004 163 204 637

1,389 225 197 48 62 53 34

115 457 134 73

166 22

1,983 472 725 449 149 42

107 127 110 65 45

676 183 87

406 1, 517

50 475 340 44 63 28

501 251 76 53

102 9

2,5081,117

5042601274978

11720710899

680154130396

7,882459

2, 718 2,537

972757

3, 796 405 12234

30543

4,857 2,469 1,314

681 371 108 263 262 265 150 115 809 169 161 479

4,482 384

1,353 1,073

125 31

124 1, 456

702 156 60

329 42

4,246 2,268

990 413 338 85

253 239 232 123 109 756 163 118 475

2,612 195 533 150 130 50

203 372 892 191 90

304 35

7,150 2,742 2, 692

934 1,041

564 477 717 238 124 114

1, 478 437 277 764

2,107

575(6)

33988

14818

9892581668813

i Estimates of the Office of Domestic Commerce, U. S. Department of Commerce. Construction expenditures represent the monetary value of the volume of work accomplished during the given period of time. Measurement of construction activity in 1939 prices was accomplished by deflating each class of construction by an appropriate construction cost index. For more detailed explanation of the method, see the Statistical Supplement to Construction Materials, monthly report of the Department of Commerce, May 1949, pp. 31-42.

a Includes major additions and alterations, except in the case of private residential building, which covers only new construction.

3 Expenditures by privately owned public utilities for nonresidential

building are included under Public utilities.4 Expenditures for nonresidential building at military installations are

included under Military and naval facilities.Excludes expenditures to construct facilities used in atomic energy

projects. Public industrial building not segregable from private for 1920 through

1932, but the amount involved is negligible.7 Covers, primarily, publicly owned electric light and power systems and

local transit facilities.8 Covers construction not elsewhere classified, such as airports, naviga

tional aids, monuments, etc.


T able 13.Greatest year-to-year increase and maximum annual expenditures for new construction, in current and 1989 prices,by type of construction, 191548 1

14 CONSTRUCTION 1948 IN R E V IE W

Current prices 1939 prices

Type of constructionGreatest year-to-year

increaseMaximum annual

expendituresGreatest year-to-year

increaseMaximum annual

expenditures

Amount (in millions) Years

Amount (in millions) Year

Amount (in millions) Years

Amount (in millions) Year

$5,656 1945-46 $18, 775 1948 $3,056 1945-46 $10,604 1927

Private construction. _____________________ ___________ 5, 537 2,499 2,332 1,047

911

1945-46 14, 563 7, 223 3, 578 1, 702 1,224

1948 3,184 1, 505

1945-46 8,804 4, 592 2,692

960

1926Residential building (nonfarm)__________ ____________ 1945-46 1948 1945-46 1925Nonresidential building (nonfarm)1 * 3_________________ __ 1945-46 1948 1,281

5111945-46 1929

Industrial______________________ _______ ______ 1945-46 1947 1945-46 1946Commercial____________________________________ 1945-46 1948 559 1945-46 1,085

5641927

Warehouses, office and loft buildings____________ 257 1945-46 323 1948 162 1945-46 1929Stores, restaurants, and garages________________ 654 1945-46 901 1948 397 1945-46 680 1927

Other nonresidential building_____________________ 374 1945-46 957 1948 220 1924-25 965 1926Farm construction__________________________ _____ 159 1945-46 500 1948 87 1934-35 320 1917

Residential_____________________________________ 96 1945-46 275 1948 44 1934-35 206 1917Nonresidential______________ __________________ 63 1945-46 225 1948 43 1934-35 129 1915

Public utilities____________ ______________________ 964 1946-47 3, 262 521

1948 467 1946-47 1,912 1948Railroad____________ ____________________ __ 185 1922-23 1930 135 1922-23 470 1930Telephone and telegraph______ __________________ 205 1946-47 713 1948 117 1945-46 354 1948Other public utilities___ ________________________ 699 1946-47 2,170

10, 405 700

1948 384 1946-47 1,363 1948Public construction ________________________________ _ 5,341

2981941-42 1942 3,400 1941-42 7,882

5691942

Residential building________________________________ 1945-46 1943 189 1940-41 1943Nonresidential building4_________ _________________ 2,069

2,1571941-42 3, 653

3,437 567

1942 1,365 1,464

220

1941-42 2, 718 2,537

1942Industrial 8. _ _____ _________ ________________ 1941-42 1942 1941-42 1942Educational______________________________ _____ 292 1947-48 1948 1935-36 418 1939Hospital and institutional_______________________ 138 1947-48 219 1948 51 1947-48 117 1931Other nonresidential_____ ______________________ 127 1947-48 304 1939 108 1935-36 304 1939

Military and naval facilities__________________________ 3,396 522

1941-42 5,016 1,585

481

1942 2,340286

1941-42 3,796 1, 277

356

1942Highway________ __________________________________ 1946-47 1948 1929-30 1931Sewage disposal and water supply________ ___________ 150 1947-48 1948 98 1929-30 1930Miscellaneous public service enterprises 8______________ 80 1926-27 209 1931 98 1926-27 243 1931Conservation and development_______________________ 211 1947-48 597 1948 84 1934-35 370 1936All other public 7_____________ _____ ________________ 86 1946-47 162 1948 70 1942-43 113 1943

1 Construction expenditures represent the monetary value of the volumeof work accomplished during the given period of time. Construction activity in 1939 prices is estimated by the Office of Domestic Commerce. U. S. Department of Commerce; each class of construction being deflated by an appropriate construction cost index. For more detailed explanation of the method, see the Statistical Supplement to Construction Materials, monthly report of the Department of Commerce, for May 1949, pp. 31-42. Construction activity in current prices is estimated jointly by the Bureau of Labor Statistics and the Office of Domestic Commerce.

3 Includes major additions and alterations, except for private residentialbuilding, which covers new construction only.

3 Expenditures by privately owned public utilities for nonresidential building are included under Public utilities.

4 Expenditures for nonresidential building at military installations are included under Military and naval facilities.

8 Excludes expenditures to construct facilities used in atomic energy projects.

6 Covers, primarily, publicly owned electric light and power systems and local transit facilities.

7 Covers construction not elsewhere classified, such as airports, navigational aids, monuments, etc.



C hart 3 . Expenditures for N e w Construction

period, the proportion of total national product accounted for by business construction was substantially lower than during the 1920s and only slightly more than in the years immediately preceding World War II. In comparison, the ratio of expenditure for producers durable equipment to the gross national product reached an all-time high during the postwar period.

Despite cost considerations, numerous institutions yielded to the pressure of demand for increased services, and spent accumulated building funds liberally. Outlays for new privately owned social and recreational facilities were almost one and a third times again as high in 1948 as in 1947.

New church building doubled between the 2 years, and private, including parochial, school construction rose by 46 percent.

About half of the billion-dollar increase in public construction was for educational, hospital, and other community buildings. Large gains occurred in conservation and development work and in the construction of sewage-disposal and water-supply facilities. Highway construction (including streets and roads) rose by 22 percent and continued to be the biggest single item of public construction expenditures, but the physical volume of highway construction appeared to be less than before the war.

Expenditures for new construction put in place exceeded a billion dollars each month throughout 1948, reaching a peak of over 1.9 billion dollars in August. In 1947 the peak did not occur until October when outlays totaled 1.5 billion dollars. In both years dollar volume in the peak month was well over 80 percent higher than in February, the month of least activity.

Record monthly expenditures were made in 1948 not only for new

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