The Fixie Chick blog

Wednesday, August 27, 2008

Back To School? Current Trends in Construction Employment

From 2004 to 2006, construction was among the leading contributors to job growth, with
employment expanding at over triple the rate of total nonfarm payrolls as measured by the
Current Employment Statistics (CES) or "establishment" survey.

Fueled by a boom in housing, the industry had added over a million jobs since its most recent trough in 2003. In 2006, the
housing boom ended as homes sales stalled and the number of unsold homes rose.
Construction employment peaked in September 2006 and then fell by 112,000 over the year.
Residential construction has borne the brunt of the slowdown, shedding 192,000 jobs since
March 2006.

Job losses in construction appear subdued in comparison to the sharp declines in some of the
other housing indicators. Homebuilding has continued to weaken, with starts, permits, and
construction spending all falling.

In August 2007, the number of single family units under construction was 22.4 percent below the previous year's level, and residential construction spending was down 16.0 percent over the year. Throughout the recent turmoil in housing, the
downturn in construction spending has been confined to the residential segment, which accounts for just under half of total construction spending. Expenditures on nonresidential building and public-sector construction have continued to expand throughout the downturn, with annualized spending increasing by 14.7 percent, as of August 2007. Overall, construction
spending has only declined 1.7 percent over the year ending in August.
This information is published with permission from the Bureau of Labor Statistics.

Personally, I believe that we will see growth in residential constructions employment as new home building slows. During these lulls, homeowners typically "improve" rather that "move", increasing the need for skilled laborers and project managers.
Check back to the Fixie Chick Blog this coming Friday as I will be posting some education information I have researched for those of you who may be considering a career in construction!

-Till Friday
The Fixie Chick

posted by Fixie Chick at 9:59 AM