With 80% of layoffs occurring in nonresidential construction, Ken Simonson, AGC chief economist, said the decline in nonresidential construction has eclipsed housing’s problems.

The national unemployment rate for the construction industry rose to 17.1% as another 64,000 construction workers lost their jobs in September, according to the Associated General Contractors of America (AGC) as it analyzed new employment data. With 80% of layoffs occurring in nonresidential construction,Ken Simonson, AGC chief economist, said the decline in nonresidential construction has eclipsed housing’s problems.

“The housing industry may be stabilizing, but the broader construction crisis is only getting worse,” Simonson said. “While the stimulus is helping slow the decline, it’s clearly far from enough to reverse sweeping industry-wide layoffs on its own.”

Simonson said the new September employment data assembled by the Bureau of Labor Statistics showed 50,800 layoffs in the nonresidential construction sector this September, while there were 13,300 fewer workers in the residential construction sector during the same period. He added that over the last year, 649,800 nonresidential construction workers were laid off while 443,000 residential workers lost their jobs.

Since December 2007, residential and nonresidential construction employment shrank by 1.5 million. In other words, one out of every five people working in construction in 2007 has lost their job, Simonson added.

AGC CEOStephen E. Sandherrsaid the association is calling for a series of tax credits, incentives and deductions designed to boost demand for private-sector construction activity that represents the bulk of the construction market. The plan also calls for programmatic new investments in infrastructure and policy revisions designed to jump-start needed work on highways and transit systems, water systems, federal building and new sources of renewable energy.

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Source: AGC of America