Association Reports Construction Unemployment Grows to 18.8 Percent

The construction unemployment rate grew to 18.8 percent in November as the sector lost another 5,000 jobs since October, according to an analysis of new federal employment data released by the Associated General Contractors of America (AGC). The data indicates that the construction sector has suffered more than any other industry during the economic downturn, association officials said.

“The unemployment report shows construction still has not broken free of the recession that has gripped the industry since 2006,” said Ken Simonson, the association’s chief economist. “Other than the stimulus and other temporary federal programs, it has been a pretty bleak four years for the industry.”

Simonson noted that the construction industry has lost 2.1 million jobs since employment in the sector peaked in August 2006. He added that the sector has continued to lose jobs during the past 12 months even as overall private employment has picked up. Since November 2009, the industry has lost 117,000 jobs while the private sector added 1.088 million jobs. The industry’s 18.8 percent unemployment rate, not seasonally adjusted, also was the highest of any industry and roughly double the overall unemployment rate.

The only construction segment to add jobs in the past year has been heavy and civil engineering construction, which has benefitted from federal stimulus, military base realignment and Gulf Coast hurricane-prevention projects, Simonson said. Meanwhile, residential construction has lost 79,000 jobs over the past 12 months, while nonresidential specialty trade contractors and nonresidential building—the other two segments in the nonresidential category—have lost 62,000 jobs.

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