CONSTRUCTION UNEMPLOYMENT SURGES TO 18.7 PERCENT AS ANOTHER 62,000 CONSTRUCTION WORKERS LOSE THEIR JOBS IN OCTOBER
Extension of Home Buyers' Tax Credit, Expansion of Carryback of Net Operating Losses to Provide Some Help for the 1.6 Million Construction Workers who Lost Jobs Since December '07
Construction workers continued to suffer more job losses than any other sector as new federal figures out today show another 62,000 lost their jobs in October while construction unemployment surged to 18.7 percent. The figures show that additional measures to stimulate construction demand like the recently passed extension of the home buyers' tax credit and expansion of carryback for net operating losses are needed, the Associated General Contractors of America said.
"The nation's economic troubles are forcing construction workers to shoulder a withering burden," said Stephen E. Sandherr, the association's chief executive officer. "Helpful as the stimulus has been in saving some construction jobs, it is going to take more work to halt the devastating job losses that are wiping out millions of construction workers' families."
Sandherr said the new October employment data assembled by the Bureau of Labor Statistics showed construction workers suffered more job losses than any other segment of the economy, followed closely by manufacturing, which lost 61,000 jobs. He added that the construction job losses were almost twice as severe as the manufacturing losses when compared to the size of the sectors' overall workforces.
Among construction workers losing jobs in October, 47,000 were in the nonresidential construction sector, while 15,000 were from the residential construction sector, Sandherr noted. He added that since December 2007, residential and nonresidential construction employment has declined by over 1.6 million.
Sandherr said that construction workers should expect some relief from the increased demand for construction that will come with the recently passed extension of the home buyers' tax credit. He added that construction companies will be able to convert future tax benefits into cash today that can be used to expand payrolls now that the carryback of net operating losses has been expanded. "It is good to see Washington focusing on desperately needed measures to stimulate private construction activity," he added.
He urged Congress and the Administration to take additional measures outlined in the association's construction recovery plan designed to boost construction activity, increase employment and expand the economy. "Construction workers are ready to drive economic growth, instead of dragging it down," Sandherr said.