Could some of the most in-demand housing markets be cooling off?
Construction employment up in September
Construction employment is down 2.175 million jobs from the peak in April 2006, but up 53,000 this year through September.
construction jobs, new construction, construction employment
Construction employment is down 2.175 million jobs from the peak in April 2006, but up 53 thousand this year through the September, according to a Bureau of Labor Statistics (BLS) report, reported Calculated Risk.
Usually residential investment (and residential construction) lead the economy out of recession, and non-residential construction usually lags the economy. But this wasn’t the case this time because of the huge overhang of existing housing units.
After five consecutive years of job losses for residential construction (and four years for total construction), it looks like construction employment will increase this year (and residential will be close). However, there will not be a strong increase in residential construction until the excess supply of housing is absorbed.
In addition, residential investment has made a positive contribution to GDP so far this year for the first time since 2005.