Construction employment expanded in two-thirds of all states in January as the industry showed signs of emerging from a six-year slump, according to an analysis by AGC of America of Labor Department data. Association officials cautioned however that the industry’s recovery remains fragile and that current and looming federal budget cuts threaten to drag down construction employment in numerous states. "These results show that contractors are finding work in more parts of the country than they have for many months," said Ken Simonson, the association’s chief economist. "Further gains appear likely but could be derailed if lawmakers continue to make indiscriminate cuts to key construction and infrastructure programs."