If we go down the path of manufacturing as an important part of the economy and dump money into it which the government has been doing in the past 14 years, we have two problems which are related to each other -
1 - the jobs that are created are not going to be at the level of the recent past even if the output is the same. Technology is needed to compete on a global scale, technology means less people to do the same thing.
2 - to make up for those jobs that were not created, we will have to go back to the old way of producing things which got us into trouble in the first place and reduce our productivity to our former numbers which means number one is now unachievable. This also means that those who work will have to take a pay cut below market value just to keep working.
Construction jobs are broken down between new housing and other construction with state and local government building projects being lumped into the latter when it should be separated out. These are not creating new jobs but keeping people working while other things wait - road construction is a perfect example, no big hiring push was made but the companies who bid on the work and got it scheduled their projects around the work to keep the payroll low and profits high. Housing is still taking a beating and we are in a deflationary cycle still which makes people worried about their home values.
The biggest issue looming on the horizon is the European markets and the problems they are handing us. IF it wasn't for Germany shoring up the EU last week, we would have seen a real hit in our markets and people would start to panic. BUT it isn't over yet, a lot of people in Germany are now getting upset with their money bailing out the EU instead of other countries stepping up efforts to solve their own problems. I think if they attempt another bail out, which is going to be needed, the German people may force their government to change.