Which Creates More Jobs?

In the face of a serious recession, lawmakers at both the state and federal level are calling for investment in infrastructure projects, such as roads, that will bring the unemployment rate down while addressing what’s seen as an infrastructure crisis.

And they’re absolutely right. Such jobs pay well, and our infrastructure needs are large. But let’s invest strategically. Real world experience points to two things.

First, “fix it first” types of projects – such as resurfacing, rehabilitating and reconstructing roads – are generally more labor intensive than new highway construction (after adjusting for land costs, which are necessary when building an entirely new road but are not relevant when upgrading an existing one). “The Jobs Are Back in Town,” [PDF] a 2003 study by Good Jobs First, found that “for every $1 billion spent on federally-aided highway resurfacing projects, some 10,421 person-years of construction labor were generated, while with new highway construction (after adjusting for land costs) only 9,316 person-years were created.” And “fix it first” benefits drivers’ pocketbooks; cracked and bumpy roads increase car maintenance costs and reduce fuel efficiency. 

Second, investing in new public transportation infrastructure generally creates more jobs than investing in new highway and bridge infrastructure. A 2004 study by the Surface Transportation Policy Project, “Setting the Record Straight: Transit, Fixing Roads and Bridges Offer Greatest Job Gains”, [PDF] found that for every $1.25 billion spent on new public transportation projects, nearly 51,300 people are employed. In contrast, only 43,200 are employed per $1.25 billion spent on new roads and bridges. In other words, investment in public transportation creates approximately 19% more jobs than new road or bridge projects. And during an economic downturn, we need public transportation more than ever. Growing numbers of Oregonians have no choice other than to take transit.

Let’s leverage the most jobs, the most economic benefit and the most social good with wise transportation infrastructure investments.