The nonresidential construction industry lost 600 jobs in November, a significant improvement from the 8,400 job-loss average the industry sustained during the previous 12 months, according to a Dec. 4 employment report by the Department of Labor. Since November of last year, the nonresidential sector has lost 101,100 jobs.
“The November jobs report blew away even the most optimistic expectations,” said ABC Chief Economist Anirban Basu. “Overall, job loss in the U.S. has slowed dramatically in recent months, and the markets have responded positively to the unexpectedly good news. Construction participated more than fully in the improvement and the industry will enter 2010 with momentum.”
Heavy and civil engineering construction gained 5,200 jobs in November – the first monthly increase since May 2008. On a year-over-year basis, heavy and civil engineering construction employment is down 109,000 jobs, or 11.6 percent. Meanwhile, nonresidential specialty trade contractors continue to struggle as the sector shed 28,500 jobs for the month and 424,500 jobs, over the past 12 months.
“Nonresidential specialty trade contractors are feeling the pain,” Basu noted. “Today’s numbers leave commercial construction contractors with little to celebrate. The stabilization of the labor market appears largely related to the impact of federal spending in the economy, which helps explain the improved performance of heavy and civil engineering and residential building construction, the latter of which continues to benefit from available tax credits.
“But the impact of stimulus dollars is not eternal,” Basu pointed out. “Stimulus packages are intended to be temporary fixes, and this one is no exception. While the next several months are shaping up to be a time of improvement for the U.S. economy and for the nonresidential construction industry, how lengthy the recovery will be remains in doubt.”
Residential building construction lost 500 jobs in November and has lost 106,200 jobs since the same period one year ago. In total, the construction industry lost 27,000 jobs for the month, the smallest number lost in any given month since November 2007. The construction industry has lost a total of 979,000 jobs or 14.1 percent of the workforce since last year.
The nation as a whole lost only 11,000 jobs in Novembers and the Bureau of Labor Statistics revised October’s job loss numbers to 111,000, down from the preliminary report of 190,000 jobs lost. The national unemployment rate fell slightly to 10 percent from 10.2 percent in October.
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