The construction unemployment rate jumped to 18.8% in November as the sector lost another 5,000 jobs since October, according to an analysis of new federal employment data released today by the Associated General Contractors of America. The data indicates that the construction sector has suffered more than any other industry during the economic downturn, association officials said.
"The unemployment report shows construction still has not broken free of the recession that has gripped the industry since 2006," said Ken Simonson, the association's chief economist. "Other than the stimulus and other temporary federal programs, it has been a pretty bleak four yours for the industry."
Simonson noted that the construction industry has lost 2.1 million jobs since employment in the sector peaked in August 2006. He added that the sector has continued to lose jobs during the past twelve months even as overall private employment has picked up. Since November 2009, the industry has lost 117,000 jobs while the private sector added 1,088,000 jobs. The industry's 18.8% unemployment rate, not seasonally adjusted, also was the highest of any industry and roughly double the overall unemployment rate.
The only construction segment to add jobs in the past year has been heavy and civil engineering construction, which has benefitted from federal stimulus, military base realignment, and Gulf Coast hurricane-prevention projects, Simonson observed. Meanwhile, residential construction has lost 79,000 jobs over the past twelve months, while nonresidential specialty trade contractors and nonresidential building - the other two segments in the nonresidential category - have lost 62,000 jobs.
Association officials cautioned that the stimulus and other temporary federal programs would begin winding down in 2011, most likely before private, state or local demand for construction picks up. They urged Congress and the Administration to act on a series of long-delayed infrastructure bills for water, transportation and other infrastructure programs.
"We're hoping Congress doesn't cut off federal investments that are almost single-handedly keeping this industry together," said Stephen E. Sandherr, the association's chief executive office. "Even the Deficit Commission understands that the one thing we can't afford to do as a nation is neglect our infrastructure," Sandherr added, referring to the commission's proposal to raise the gas tax to fund transportation upgrades.
Related Stories
Hotel Facilities | Aug 26, 2021
Building hotels with modules, with citizenM's Menno Hilberts
In this exclusive interview for HorizonTV, Menno Hilberts, Managing Director of Project Management with hotelier citizenM, explains how the company is employing modular construction to help double its presence in the U.S.
Giants 400 | Aug 25, 2021
Top 140 Contractors for 2021
Turner Construction, Whiting-Turner Contracting, STO Building Group, and DPR Construction top the rankings of the nation's largest general contractors, CM at risk firms, and design-builders for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2021 Giants 400 Report.
Sports and Recreational Facilities | Aug 25, 2021
The rise of entertainment districts and the inside-out stadium
Fiserv Forum, home to the 2021 NBA Champion Milwaukee Bucks, proved that the design of the space outside a stadium is just as important as inside.
Architects | Aug 19, 2021
BD+C Events
Building Design+Construction's annual events include the Women in Design+Construction conference and the ProConnect meeting series.
Multifamily Housing | Aug 19, 2021
Multifamily emerges strong from the pandemic, with Yardi Matrix's Doug Ressler
Yardi Matrix's Doug Ressler discusses his firm's latest assessment of multifamily sales and rent growth for 2021.
Resiliency | Aug 19, 2021
White paper outlines cost-effective flood protection approaches for building owners
A new white paper from Walter P Moore offers an in-depth review of the flood protection process and proven approaches.
Resiliency | Aug 19, 2021
White paper outlines cost-effective flood protection approaches for building owners
A new white paper from Walter P Moore offers an in-depth review of the flood protection process and proven approaches.
Contractors | Aug 10, 2021
McShane Construction Company opens new regional office in Nashville
Jason Breden, Vice President & Director of Nashville Operations, will lead the new office.
Contractors | Jul 23, 2021
The aggressive growth of Salas O'Brien, with CEO Darin Anderson
Engineering firm Salas O'Brien has made multiple acquisitions over the past two years to achieve its Be Local Everywhere business model. In this exclusive interview for HorizonTV, BD+C's John Caulfield sits down with the firm's Chairman and CEO, Darin Anderson, to discuss its business model.