Federal Spending on Transportation Benefits All Job Sectors, Study Says
A coalition of road builders and labor unions has released a study that details how federal spending on transportation infrastructure boosts the economy by creating jobs beyond the construction sector.
“Two-thirds of the economic benefits and jobs created by federal highway and transit investment occur in non-construction sectors,” said the study done by IHS Global Insight for the Transportation Construction Coalition.
The coalition includes the American Road and Transportation Builders Association, Associated General Contractors of America and several labor unions.
“For every three construction jobs created, five jobs are created in other sectors of the economy,” said the study unveiled Dec. 11.
After the construction industry, the sector that benefits most from federal transportation spending in terms of job creation is the professional and business services sector, the study said. The trade, transportation and utilities sectors are in third place, the study found.
The coalition study and others recently released are designed to build the case that Congress should pass a long-term transportation funding bill next year.
Federal funding for highways and public transit is only authorized through May 31 under a temporary spending bill Congress approved last summer.
“We think they get it,” ARTBA President Pete Ruane said about whether lawmakers see the economic benefit in transportation spending.
“And this study is just more ammunition to make the case for them to do their bloody job,” he said during a press conference.
Stephen Sandherr, CEO of AGC, acknowledged that so far Congress has ignored the sustainable-funding issue.
“But there seems to be a growing consensus that a reliable funding source needs to be identified, so, we’re about halfway home,” Sandherr said.
