More bad news on the economic front. The Associate General Contractors of America (AGC) has announced that construction employment is at a 14-year low on news that the industry shed over 21,000 jobs in September alone. The unemployment rate in the construction industry is at 17.2 percent compared to the US overall unemployment rate of 9.6 percent. According to the statement, “The construction industry continues to suffer from declining investments in construction and broad uncertainty about the future of many federal infrastructure programs and tax rates, association officials noted.”
The news isn’t much better in other parts of the world either. Ulster Bank in the UK released data that showed business activity down for the 10th straight month. The current and projected cuts from the Coalition Government have taken a toll on the construction industry in addition to other industries. Though overall, the UK economy is showing signs of recovery, the recover hasn’t trickled down to many of the business sectors. Chief economist of Northern Ireland Ulster Bank told the Belfast Telegraph, “The construction sector continues to contract at a rapid rate, with the pace of job losses accelerating for the fifth month in a row. Construction firms are shedding jobs at the fastest rate since March last year. This provides much cause for concern, given that much-needed capital investment is set to be slashed in the years ahead….Firms in the construction sector continue to aggressively cut prices in an effort to secure work.”
Even projects in the cash cow of Dubai are on hold until the global economy improves. There are signs of hope in the Australasia region and Latin America, where infrastructure and commercial projects continue.
Source: Belfast Telegraph, AGC