Industry Briefs: Construction Employment Hits 14-Year Low
Construction employment slipped to its lowest level in 14 years in June as more jobs disappeared across the country.
According to federal figures released earlier this month, construction unemployment stood at 20.1 percent in June, more than double the national average for other fields.
After making gains earlier this year, more than 50,000 construction jobs disappeared in May and June.
“The recession may have ended a year ago for most of the economy, but for construction, job losses and business closures continue every month,” said Ken Simonson, chief economist for the Associated General Contractors of America.
The 20.1 percent unemployment rate was the worst for the industry since July 1996.
And the problems are not regional. Figures show construction jobs have been reduced in 294 of 337 metro areas over the past year. In California, more than 84,000 construction jobs have gone away in the past 12 months, a 13 percent decline.
And the outlook isn't providing much hope.
“With current demand soft and chances of a turnaround months away, construction firms are unwilling to expand payrolls,” said Simonson.
Prices tumble for construction materials
The total cost of lumber and panels for construction of an average home has decreased 35 percent since April, according to Crow's Weekly Market Report.
Based on the Crow's Construction Materials Cost Index, the wholesale cost of lumber and panels for framing an average home has dropped from $7,511 on April 30 to $4,951 on June 30.
This drop is the result of a steep, supply-driven run-up in prices during the first quarter of the year, Crow's said.
"Once buyers filled up inventory needs and production volumes became more in line with demand, prices began a continuous decline to the point we are at today," Crow's executive editor Ken Tennefoss said in a press release.
Boom in green building expected
Bryan Jackson, a green and sustainable construction adjunct professor at the University of Southern California and the editor of Green Building Update, said in a June article that recent research predicts a 900 percent growth in certified green projects worldwide in the next 10 years.
A Pike Research study estimates that certified green building projects will grow from 6 billion square feet this year to 53 billion square feet worldwide by 2020.
"Green building is the only bright spot of building right now," Jason LaFleur, a project manager with the Alliance for Environmental Sustainability, said in a press release from ZweigWhite.
