Bureau of Labor Statistics reports the U.S. construction unemployment rate now stands at 24.7 percent
By Ken Simonson
The latest Bureau of Labor Statistics (BLS) www.bls.gov data shows that construction employment sank by 75,000, nearly the same as the 77,000 average over the past 12 months. The construction unemployment rate rose to 24.7 percent, not seasonally adjusted. Over the past 12 months, construction accounted for nearly one-quarter of all job losses (926,000 out of 4.0 million, or 23 percent), even though the industry now employs only 4.3 percent of all workers (5,625,000 of 129.5 million), the lowest total since 1996 and lowest share of overall employment since 1992.
In an ominous sign for future building construction, architectural services employment (not seasonally adjusted) fell for the 17th straight month in December (-1,300 jobs or 0.8 percent) and dropped 14.6 percent from December 2008. In contrast, engineering and drafting services employment (not seasonally adjusted) was nearly unchanged in December (- 200 or 0.0 percent) and 5.7 percent from December 2008.
Construction employment (combined with logging and mining in many metros to prevent disclosure of data about industries with few employees) rose in only four out of 337 metro areas from December 2008 to December 2009, BLS reported on Monday: Harrisburg-Carlisle, Pennsylvania (1,500 combined jobs, 13 percent); Springfield, Ohio (100 combined, 8 percent); Columbus, Indiana (100 combined, 5 percent); and Tulsa, Oklahoma (700 construction jobs, 3 percent). The largest 12-month percentage drop occurred in Leominster-Fitchburg, Massachusetts (38 percent combined).
Construction spending slumped 1.2 percent in December from an upwardly revised November total to a seasonally adjusted annual rate (SAAR) of $903 billion, a six-year low and 9.9 percent lower than in December 2008, the Census Bureau www.census.gov reported on Monday. Private nonresidential spending edged up 0.2 percent for the month but tumbled 18 percent compared to December 2008, with double-digit declines in nearly every category. Only power construction—power plants, wind and other renewable power facilities, and transmission lines—increased from the year-ago level, by 14 percent.
Private residential construction shrank 2.8 percent for the month and 11 percent from year-earlier figures. But the total masks a seventh consecutive monthly rise in new single-family construction, which was up 0.6 percent for the month. Compared to December 2008, the category was down 18 percent, a much smaller year-to-year drop than in earlier months. Meanwhile, new multi-family construction fell for the 11th straight month, by 4.4 percent, and by 45 percent compared to December 2008. Improvements to existing single- and multi-family structures plunged 5.5 percent for the month but rose 8.2 percent over the year-ago level.
The Bureau of Economic Analysis www.bea.gov reported that Real investment in private nonresidential structures fell 15 percent, the sixth straight quarterly decline and only a slight improvement over the 18 percent decrease in the third quarter. Real private residential investment increased 5.7 percent, following a 19 percent gain in the third quarter. Real government investment in structures slipped 5.0 percent, following an 8.6 percent rise.
Orders for construction materials and supplies fell 1.5 percent in December and totaled $453 billion for the year, down 13 percent from 2008. Orders for construction machinery jumped 17 percent in December but ended the year down 57 percent from 2008 at $13 billion.
Edited by Kevin Doyle
The Data DIGest is a weekly summary of economic news compiled by Ken Simonson, the Chief Economist of The Associated General Contractors of America (AGC) www.agc.org
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