Job figures highlight economic devastation throughout construction industry
January 9th, 2009“Today’s employment figures underscore the dramatic job losses throughout the construction industry that are devastating families, undermining communities and dragging our economy downward. The fact that almost 900,000 construction workers are out of work after almost two years of steady job losses reinforces the vital need for significant new infrastructure investments as part of the planned stimulus package. Our forecast figures clearly show that without those investments, construction companies will continue to cut jobs, decrease spending and halt orders for new supplies and equipment. With those investments, construction companies will retain employees, expand their payrolls and order new equipment,” said Stephen Sandherr, chief executive officer of the Associated General Contractors of America.
An estimated two-thirds of the nation’s non-residential construction companies are planning to cut their payrolls, according to new employment and business forecast figures released by the Associated General Contractors of America. All told, those layoffs are forecast to result in a 30 percent decline in the number of people working on construction projects.
“Unless the business climate changes significantly and soon, the construction sector will continue to experience the kind of devastating job losses and crippling declines in business activity that will undermine efforts to end the recession,” Stephen Sandherr, the association’s chief executive officer said.
The forecast results, which are based on a representative survey conducted by the construction association late in 2008, found no relief in sight for construction companies that already have been among the hardest hit by the economic slowdown. Many construction companies experienced significant slowdowns beginning late last year, resulting in a 10 percent decline in the number of construction workers since 2006, Sandherr noted.