Post by unlawflcombatnt on Aug 27, 2007 23:33:54 GMT -6
from Reuters:
Construction job losses could top 1 million
8/26/07
By Nick Zieminski
"(Reuters) - Job losses in the construction sector could top 1 million if a housing downturn tips the economy into recession and tighter access to credit dampens business investment.
Strength in nonresidential construction may continue to offset a downturn in housing for now, but recent turmoil in credit markets suggests job losses may accelerate in the sector in the next few months.
"With what's happening with the mortgage market, the financial markets in general, I think we'll continue to shed workers at least for six months, maybe as much as a year," said Bernard Markstein, director of forecasting at the National Association of Home Builders.
"The ability of nonresidential to continue absorbing additional workers is going to be limited, and that's going to put downward pressure on construction employment overall," he said, adding that cuts may be deeper than in the 1990s.
Construction employment fell about 15 percent in both the 1990s and 1980s recessions, and it dropped about 18 percent in the recession of the mid-1970s, according to the Bureau of Labor Statistics (BLS)....
About 7.7 million Americans are employed by construction companies, according to the BLS, down about 75,000 from a peak in September 2006....
A 15 percent decline now would mean more than 1 million jobs lost.
"there may be larger losses because growth was so steep," said John Challenger...of...consulting firm Challenger Gray & Christmas. "(Compared with) that 15 percent that we saw then (1980s & 1990s), this may be a steeper, more volatile cycle."
Employment in the sector has fallen in each of the past four months from a year ago. The next six months may show a surge in job cuts, as projects are completed and new ones do not appear....
Job cuts in the sector have closely correlated with data on construction spending but with about a six-month lag, said BLS economist Chris Goodman.
Construction spending in June fell for the first time since January, while private residential construction posted its 16th straight monthly drop....
Construction job losses could top 1 million
8/26/07
By Nick Zieminski
"(Reuters) - Job losses in the construction sector could top 1 million if a housing downturn tips the economy into recession and tighter access to credit dampens business investment.
Strength in nonresidential construction may continue to offset a downturn in housing for now, but recent turmoil in credit markets suggests job losses may accelerate in the sector in the next few months.
"With what's happening with the mortgage market, the financial markets in general, I think we'll continue to shed workers at least for six months, maybe as much as a year," said Bernard Markstein, director of forecasting at the National Association of Home Builders.
"The ability of nonresidential to continue absorbing additional workers is going to be limited, and that's going to put downward pressure on construction employment overall," he said, adding that cuts may be deeper than in the 1990s.
Construction employment fell about 15 percent in both the 1990s and 1980s recessions, and it dropped about 18 percent in the recession of the mid-1970s, according to the Bureau of Labor Statistics (BLS)....
About 7.7 million Americans are employed by construction companies, according to the BLS, down about 75,000 from a peak in September 2006....
A 15 percent decline now would mean more than 1 million jobs lost.
"there may be larger losses because growth was so steep," said John Challenger...of...consulting firm Challenger Gray & Christmas. "(Compared with) that 15 percent that we saw then (1980s & 1990s), this may be a steeper, more volatile cycle."
Employment in the sector has fallen in each of the past four months from a year ago. The next six months may show a surge in job cuts, as projects are completed and new ones do not appear....
Job cuts in the sector have closely correlated with data on construction spending but with about a six-month lag, said BLS economist Chris Goodman.
Construction spending in June fell for the first time since January, while private residential construction posted its 16th straight monthly drop....