Not every sector experienced growth: the construction industry isstill shedding jobs at an alarming pace. The construction unemploymentrate jumped to 27.1% as another 64,000 construction workers lost jobsin February, the Associated General Contractors of America noted,citing Labor's latest figured. In fact, the economy would have addedjobs had it not been for the declines in construction employment forthe third time in four months, the AGC said.
According to the association, job losses are widespread acrossconstruction sectors, with nonresidential specialty trade contractorsexperiencing the largest monthly decline of 1.7% and even heavy andcivil engineering construction--the sector most likely to be boostedby stimulus funded projects--experiencing a 1.1% monthly employmentdecline. On the other hand, manufacturers added workers for the second month ina row--the first back-to-back increase since 2009.
While the drop in construction jobs is a direct reflection of thescarcity of new projects, the overall unemployment figure also is animportant metric for the real estate industry, notes Michael Gately,managing director/research of Cornerstone Real Estate Advisers. "Slower job losses support our view that commercial real estatevacancies are approaching their cyclical peaks over the next fewquarters, though the recovery remains fragile and uneven," he tellsGlobeSt.com.
"While we do not expect overall job growth to gain momentum foranother year, there does seem to be a floor forming and regionaladvantages are beginning to emerge," Gately adds. "Markets with large exposure tofederal government, healthcare and high tech are finally starting tosee modest year-over-year job gains."
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