Nonresidential construction jobs lost in June

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The nonresidential construction sector lost 5,600 jobs in June, on a seasonally-adjusted basis, according to the July 3 employment report from the U.S. Labor Department.
The loss, however, was less than that recorded in May, which was revised upward to 7,400 in the most recent employment report.
The six-month job losses for nonresidential construction now stands at 29,100 and a 12-month net loss of 43,900 jobs since June 2007.
Residential construction continues to lose jobs more rapidly than nonresidential construction with reported job losses in June of 6,700 since May. From June 2007 to June 2008, residential construction lost nearly 115,000 jobs, the report states.
Rick Herman, executive vice president for the Rochester Home Builders Association (RHBA), said Rochester continues to see stable work in the residential market, bucking national trends.
“In the months following Homearama, we see increased interest in new construction, for sure,” Herman said.
Total construction employment nationally in June 2008 was down 452,000 since June 2007, a decline of nearly 6 percent. On a monthly basis, total construction employment recorded 43,000 job losses since May. Since the employment peak in September 2006, construction has lost more than 500,000 positions, with building construction representing about 26.5 percent of the losses on a seasonally-adjusted basis.
In the July 3 Construction Economic Update,
the Associated Builders and Contractors (ABC) state that, while June’s job loss was somewhat less than losses in May, a longer-term view of the data suggests nonresidential construction activities are decelerating.
Of the total net nonresidential construction jobs lost in the past year, roughly two thirds have occurred over the past six months. With the economy continuing to deteriorate due to a host of factors, including overextended consumers and a stubborn credit crunch, ABC economists anticipate continued nonresidential construction job losses in the remaining months of the year and into 2009.
One of the construction industry’s key leading indicators, the architectural billings index, is down to historic lows not seen since 1995. ABC said this indicates a substantial slowing in nonresidential construction starts. Rising input prices are another drag on the nonresidential construction industry as many developers find their business plans do not reflect adequate cash flow to justify moving ahead with projects.
There are exceptions, however, as contractors find opportunities in the power sector thanks to a rising need for generating facilities. The manufacturing sector also continues to be a healthy one for contractors as U.S. exports expand thanks to a weak dollar.
For more information visit www.abc.org.