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.”
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.
Click hereto learn more about the
recovery plan, “Build Now for the Future, A Blueprint for Economic
Source: AGC of America