AGC: Construction Unemployment Rate Hits 27.1 Percent
March 9, 2010
The construction unemployment rate jumped to 27.1 percent and construction
employment dropped to a 14-year low as another 64,000 construction workers lost
jobs in February, according to federal employment figures released today. The
economy would have added jobs had it not been for the declines in construction
employment for the third time in four months, the Associated General Contractors
of America noted.
“While the broader economy may be recovering, the construction industry
continues to decline at an alarming rate,” said Ken Simonson, the association’s
chief economist. “If these trends don’t change soon, millions of American
families will continue to suffer.”
Simonson noted that industry’s job losses in February were consistent with
the prior six months and not mainly attributable to exceptionally bad weather.
He added that construction unemployment is at the highest level recorded since
the federal government began making the data available in 1976. And he noted
that nonresidential construction experienced significantly more job losses than
the residential sector in February, 53,500 jobs lost versus 10,600.
Overall declines in construction activity, however, have cost 2.2 million
construction workers their jobs since industry employment peaked in June 2006, a
28 percent drop, Simonson noted. Construction has accounted for 1,936,000 of the
8,425,000 nonfarm payroll job losses since the recession began in December 2007,
or 23 percent of the total, even thought the industry employs only 4.3 percent
of all workers, he added.
The construction economist noted that job losses appeared widespread across
construction sectors, with nonresidential specialty trade contractors
experiencing the largest monthly decline of 1.7 percent. He noted that even
heavy and civil engineering construction, the sector most likely to be boosted
by stimulus funded projects, experienced a 1.1 percent monthly employment
decline.
“The industry has gone from being a symptom of our economic problems to a
victim of them,” said Stephen E. Sandherr, the association’s chief executive
officer. He noted that while the current Jobs Bill prevents declines in federal
highway funding, it does little to boost overall infrastructure investments.
“Until we see meaningful increases in demand for new infrastructure and private
sector construction projects, our economy will continue to suffer.”
Comments (0) Post a Comment
Did you enjoy this article? Click here to subscribe to the magazine.