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January 7, 2011

Industry Loses 16,000 Jobs in December; <br>Returns to 20+% Unemployment Rate 

Employment in construction declined by 16,000 during the month of December as the industry's unemployment rate hit 20.7%, according to analysis of federal employment figures released today by the Associated General Contractors of America.

"At this point, it doesn't look like there's anything to replace the temporary help that the stimulus has been providing for the construction industry," Ken Simonson, the association's chief economist, said in a statement. "Today's figures offer yet another reminder that the construction industry remains, and is likely to remain, the hardest-hit industry in the economy."

Simonson suggested that unseasonably harsh weather during December probably exacerbated the job decline in heavy construction, which is far more vulnerable than most industries to outdoor conditions.

During December, there were 5.6 million Americans employed in the construction industry, a 27% decline since employment in the industry peaked in August 2006 at 7.7 million. During the past year, the construction industry has lost 93,000 jobs.

Overall, the U.S. economy added 103,000 jobs in December, according to the U.S. Labor Department, while the unemployment rate fell to 9.4%.

December's numbers were an improvement over November, when only 39,000 new jobs were added.

Noting that there are now more than 1.7 million unemployed construction workers in the U.S., AGC urged Congress and the administration to act quickly to pass several long-stalled infrastructure bills. They said further delays would not only hurt construction employment, but would lead to increased costs for taxpayers.

"You can pay relatively little to maintain aging roads, water systems and locks now, or you can pay a lot to repair them later," said Stephen Sandherr, the association's CEO. "The best way to boost the economy and save taxpayers money is to act now to address our growing infrastructure debt."


Questions regarding this article may be directed to editor@aashtojournal.org.

 
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