The pace of layoffs in the nonresidential building construction sector slowed in April, according to a May 8 employment report by the U.S. Department of Labor. The total number of jobs declined by 9,100 last month in comparison to the 10,600 job loss in March. Nonresidential construction employment has lost 87,700 jobs since the same time last year and now stands at 748,600.
“The latest employment report indicates that the nation lost more than half a million jobs in April and revisions to earlier months bring that number to more than 600,000,” said ABC Chief Economist Anirban Basu. “Normally, this would be viewed as very bad news, but some observers are interpreting the latest jobs numbers as additional evidence of economic stabilization.”
The nation’s residential building construction sector lost 12,600 jobs in April, a less dramatic decline compared to the 17,500 jobs lost in March. Since April 2008, residential building construction has lost 146,600 jobs. Total private construction employment, which includes specialty trade contractors, lost 110,000 jobs in April – much lower than the 135,000 jobs lost in March. On a year-over-year basis, the construction industry has lost nearly 1 million jobs.
“While the pace of the job loss continues to be brisk and unemployment will likely peak around or above 10 percent before reversing course, the employment report is consistent with a sea of other recently released economic data that foreshadow a slow economic recovery,” added Basu.
“For those in the nonresidential construction industry, this is welcome news. Though recovery within many nonresidential construction segments remains months, or even years, away the ongoing stabilization of the broader economy is consistent with the notion that demand for new construction will begin to emerge later this year and into 2010,” Basu continued. “The stimulus package represents an important element in that formula. With the broader economy beginning to recover even before the stimulus package has had a major impact, the implication is that better times are ahead.”
Overall, national employment fell by 539,000 for the month. More than 5.2 million jobs have been lost over the past 12 months and roughly 5.7 million jobs have been lost since the beginning of the recession in December 2007. The nation’s unemployment rate now stands at 8.9 percent – the highest level since September 1983.
To read the entire report, click
here.