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
Building Team | May 8, 2015
Construction industry adds 45,000 jobs in April
The construction industry saw an increase in jobs during the month of April after losing approximately 9,000 positions in March.
Building Team | May 8, 2015
Surety bond forms specifically for design-build projects now available
The documents are the first of their kind to be coauthored by designers and builders.
Engineers | May 6, 2015
Megadeals drive mergers and acquisitions in engineering and construction industry: FMI report
Large deals and the convergence of design and construction are spurring M&A activity in the engineering and construction industry, according to the FMI Mergers & Acquisitions Trends report.
High-rise Construction | May 6, 2015
Parks in the sky? Subterranean bike paths? Meet the livable city, designed in 3D
Today’s great cities must be resilient—and open—to many things, including the influx of humanity, writes Gensler co-CEO Andy Cohen.
Contractors | May 1, 2015
Construction workers among top U.S. drug users: study
Construction workers are topped only by miners when it comes to heavy drinking, according to a new study by the Substance Abuse and Mental Health Services Administration.
Multifamily Housing | May 1, 2015
Trade groups extend campaign to promote apartment living
The groups claim that there are more than 37 million Americans—12% of the population—living in just under 20 million apartment units nationwide. Apartments and their residents contribute $1.3 trillion annually to the economy.
Contractors | May 1, 2015
Nonresidential fixed investments fall in latest Construction Economic Update
This is the first time that nonresidential fixed investment declined since the first quarter of 2011, ABC reported. Nonresidential fixed investment had been rising by more than 4% on an annualized basis during five of the previous six quarters.
Contractors | Apr 29, 2015
Construction costs are expected to remain soft through fall of 2015
Labor and materials haven’t appreciated this year through April, according to market analyst IHS.
Contractors | Apr 23, 2015
Leopardo releases 2015 Construction Economics Outlook
Low oil prices have reduced the cost of construction, but not enough to offset the rise in labor costs, according to Leopardo's new outlook report.
High-rise Construction | Apr 23, 2015
Size matters in NYC, where several projects vie for the city’s tallest building honor
The latest renderings of 217 West 57th Street show a tower that would rise higher than the World Trade Center’s pinnacle, when elevations are included.