Construction Unemployment Keeps Building

It looks like the general media is noticing unemployment in the construction industry. Today’s news item from Yahoo! Finance:

The construction industry has been slammed with record-high job losses in recent months. The industry shed 75,000 jobs in January alone. Most of those cuts came out of non-residential specialty trade contractor positions, which plummeted by 48,000 jobs.

Of course, these massive job losses are nothing new for the construction industry. In December 2009, 53,000 construction jobs vanished. Since the dawn of the Great Recession in December 2007, the construction industry has lost a grand total of 1.9 million jobs.

Construction Workers Should Hold on to Their Hard Hats

Experts say construction job losses probably won’t come to an end anytime soon. That’s because the industry’s unemployment problems have created somewhat of a domino effect. In this tough economy, building owners can’t get financing from banks, which means they can’t afford to hire developers. Consequently, developers aren’t hiring construction companies to work on building projects. As a result, many construction companies aren’t earning enough to pay their workers, which leads to — you guessed it — countless job cuts. That means the construction industry likely won’t see employment increases until the economy finally bounces back.

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