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NEWS BRIEFS

Date Posted: April 16 2010

‘Staggering’ job losses in construction

It’s difficult to say what makes the Monroe area stand out like a sore thumb, but the city is tops on the dubious list of “metro areas” in the nation that have lost construction jobs in the year between February 2009 and February 2010.

According to an analysis released April 6 by the Associated General Contractors of America, Monroe lost  900 construction jobs – a decline of 41 percent – to top the list of percentage losses across the nation during that 12-month period. With construction work associated with two massive power plants in the area (Fermi 2 and the Monroe Power Plant) it hardly seems likely that Monroe would top the list. In fact, one local union official said Monroe “had a good run” through the first half of last year, before the bottom fell out.

In terms of actual jobs lost across the nation, Houston, Texas lost more construction jobs (25,500, -13 percent) than any other metro area between February 2009 and 2010. Other areas experiencing a high number of construction job losses included Chicago (25,200, -20 percent); Los Angeles, (23,000, -19 percent); Las Vegas (22,900, -31 percent), and Phoenix (20,600, -20 percent).

Most other Michigan areas that were in the survey lost workers at a rate that was about average compared to the rest of the country. Construction employment in Detroit-Livonia-Dearborn fell 18 percent. Grand Rapids-Wyoming dropped 15 percent.  The statewide average was -18 percent. Bay City did best: its construction unemployment level was flat from February 2009 to February 2010.

Only 10 out of the 337 metro areas in the country added construction workers during that time period, led by Eau Clair, Wisconsin, (600 jobs, or a 29 percent increase).  Even worse, 230 metro areas experienced double digit declines in construction employment.

AGC Chief Economist Ken Simonson noted that the industry continues to suffer from weak demand for new construction activity. Annual construction spending declined to an eight-year low in February.

“In virtually every area, construction workers continued to suffer the brunt of the recession,” said Simonson. “Job losses in far too many cities were simply, and sadly, staggering.”