Economic Recovery in the Construction Industry

Just got off a call entitled Economic Recovery: Under Construction, part of the 2010 Market Insights Webcast Series.

Some startling statistics about unemployment in the construction sector:

According to Kermit Baker, Chief Economist with the American Institute of Architects, the construction and architectural sectors have been the hardest hit as far as job losses go. Together, these sectors lost 7 million jobs. An even scarier statistic: 23% of construction jobs have been lost and 17% of architecture jobs have been lost.

And Ken Simonson, Chief Economist with AGC of America, put it into perspective. The national unemployment rate stands at about 10.5%. However, the unemployment rate in the construction industry is 22.7%. This is depression level unemployment!

Another scary statistic: Only 4.5% of all jobs are in the construction sector but yet 22% of all job losses have been in construction.

Clearly, the construction industry has been hit hard by this recession. Hopefully, part of the President’s new job initiatives will speak to this devastation in our industry.