The Construction industry lost 9,000 jobs from May to June,
according to an analysis of new federal employment data released by the
Associated General Contractors of America. Association officials said
that declines in public sector construction activity will negate any pickup in
private sector demand unless Congress and states fully fund needed
infrastructure spending.
The industry unemployment rate fell
from 20.1 percent a year ago to 15.6 percent in June 2011, said Ken Simonson,
the association’s chief economist. However, Simonson noted that the June 2011
employment total of 5.5 million was only 2,000 higher than in June 2010 and
more than 2.2 million, or 29 percent, below the peak in April
2006.
“Even with the drop in the industry unemployment rate,
the lack of hiring means that people are leaving construction, not going back
into it,” Simonson said. “That will make future expansion all the more
difficult.”
The construction economist noted that employment
in heavy and civil engineering construction-the segment that had previously
added jobs as a result of federal funding for stimulus, military base
realignment and Gulf Coast hurricane protection projects-shrank for the second
month in a row by 1,800 jobs, although the June 2011 total was 23,000 jobs or
2.8 percent higher than a year earlier. Residential building and specialty
trade employment dropped a combined 9,900 jobs in June and 35,000, or 1.7
percent, over the past 12 months.
Nonresidential building
and specialty trade contractors added a net 2,700 jobs for the month and 16,200
jobs, or 0.6 percent, over 12 months.
“In the second half of
2011, there should be a strong gain in apartment and manufacturing
construction; some improvement in construction of hospitals, distribution
centers and hotel renovations; and ongoing strength in power and energy
projects,” Simonson predicted. “But job creation in these niches may be swamped
by further declines in public construction and continued weakness in
single-family homebuilding, office and retail work.”
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