Employment and Unemployment in Construction and Other

Employment and Unemployment in Construction and Other

21
THE CONSTRUCTION CHART BOOK
Employment and Unemployment in Construction and Other Industries
From 1992 to 2007, total construction employment (including construction workers in the private and public sector, the self-employed,
and unpaid family members) rose from 7.0 million to 11.8 million, then
fell to 9.1 million by 2010 due to the recession (chart 21a). Consistent
with these self-reported data from the Current Population Survey (CPS,
see page 10), data collected from payroll in the Current Employment
Statistics (CES)1 show that employment in construction increased from
4.6 million in 1992 to 7.7 million in 2006, and then shrank to 5.5 million in 2010.
Payroll employment in construction experienced greater
expansion and contraction than all nonfarm (or non-agricultural) industries in the past two decades. From 1992 to 2006, payroll employment
grew at an annual average of nearly 5% (except during the short recession period in the early 2000s) in construction, but increased about 2%
annually in all nonfarm industries during the same period (chart 21b).
From 2007 to 2010, payroll employment in construction dropped by
close to 30% (~10% annually) and declined by less than 2% year-over
-year in all nonfarm industries. Between 2010 and 2011, payroll
employment increased by 1.2% for all nonfarm industries, and stopped
decreasing in construction, with the first growth (0.3%) in five years.
Payroll employment in construction subsectors followed
the overall industry trend (chart 21c). Using 1992 as the base year,
employment in Specialty Trade Contractors (NAICS 238; see page 1
for NAICS codes and definitions) grew most rapidly; an 82% increase
by 2006, but declined quickly over the following years, ending 2011
just 29% higher than 1992. The number of payroll employees in
Construction of Buildings (NAICS 236) increased by 52% through
2006, but ended 2011 only 2.9% ahead of the 1992 level. Heavy and
Civil Engineering Construction (NAICS 237) employment experienced
21a. Construction employment, payroll employment vs.
all employment, 1992-2010
12.5
21b. Year-over-year change in payroll employment,
construction vs. all nonfarm, 1992-2011
10%
Payroll employment (CES)
11.5
All employment (CPS)
% change (year-over-year)
Millions of employees
only modest fluctuations and was the subsector least affected by the
economic cycle.
Payroll employment data by detailed NAICS are only available since 2001. Employment in Residential Building (NAICS 23611)
increased rapidly — 29% from 2001 to 2006 — but dropped below the
2001 level in 2009 (chart 21d). However, employment for
Nonresidential Building (NAICS 23621 and 23622) was lower than the
2001 level except for 2007 and 2008, dropping lower again in 2009.
Residential Specialty Trade Contractors (NAICS 238001)
had a trend similar to Residential Building. From 2001 to 2006,
employment in Residential Specialty Trade Contractors increased from
1.8 million to nearly 2.4 million, and then dropped below 1.5 million
by the end of 2011 (chart 21e). The expansion and decline of employment in Residential Construction mirrors the boom and bust of the U.S.
housing market during the same period (see page 6).
Unemployment statistics also reflect the cyclical fluctuation
of construction employment.2 The unemployment rate reached its highest point of the decade in early 2010. Among private wage-and-salary
workers, the gap in unemployment between construction and all nonfarm industries increased between 2008 and 2010, with construction
taking a more severe hit from the economic decline; in February 2010,
the unemployment rate in the construction industry reached 27.1%
compared to 11.1% for nonfarm industries (chart 21f). In addition to
the impact of overall economic trends, the unemployment rate in construction also reflects the seasonal nature of the industry, which results
in greater fluctuations on a monthly basis. By the end of 2011, the
unemployment rate in the construction industry was declining, but it
was still almost double that of all nonfarm industries.
10.5
9.5
8.5
7.5
6.5
5%
0%
-5%
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2011
Year
-10%
5.5
-15%
Construction
All nonfarm
4.5
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
-20%
Year
1. Data on payroll employment were from the U.S. Bureau of Labor Statistics’ Current Employment Statistics, a monthly survey of businesses and government agencies, which includes
workers on establishment payrolls employed either full- or part-time, but excludes proprietors, self-employed, unpaid family or volunteer workers, farm workers, and domestic workers.
Persons on layoff the entire pay period, on leave without pay, on strike for the entire period, or who have not yet reported for work are not counted as employed. Government employment
covers only civilian employees.
2. Unemployed workers are those who had no employment during a given week, were available for work (except for being temporarily ill), and had tried to find employment (or were waiting
to be recalled from temporary layoff) during the four-week period ending with the reference week (see pages 10 and 22 for more information).
21
21c. Percent change in payroll employment since 1992,
by construction sector, 1992-2011
THE CONSTRUCTION CHART BOOK
21d. Percent change in payroll employment since 2001,
residential vs. nonresidential building construction, 2001-2011
90%
40%
80%
30%
60%
% change since 2001
% change since 1992
70%
50%
40%
30%
20%
10%
0%
20%
10%
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-10%
-30%
1992
1994
1996
1998
2000
2002
Year
2004
2006
2008
2010 2011
-40%
Residential
236 - Construction of buildings
237 - Heavy & civil engineering
238 - Specialty trade contractors
21e. Number of payroll employees in residential specialty
trade, 2001-2011
2,500
30%
2,277
25%
2,126
1,999
1,967
1,848 1,887
1,611
1,463 1,450
1,500
% unemployed
Number (in thousands)
Nonresidential
21f. Monthly unemployment rate, construction vs. all
nonfarm, 2001-2011
(Not seasonally adjusted: private wage-and-salary workers)
2,397
2,302
2,000
Year
-20%
20%
15%
10%
5%
1,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
Year
Construction
All nonfarm
Note:
All charts - Data cover all construction occupations, including managers and clerical staff.
Chart 21f -The tick marks for each year on the x-axis indicate the month of January.
Source:
Chart 21a - Data on all types of employment: U.S. Bureau of Labor Statistics. 2010 and previous years Current Population Survey. Calculations by CPWR Data Center. Data on
payroll employment: U.S. Bureau of Labor Statistics. 2010 and previous years Current Employment Statistics.
Charts 21b-21e - U.S. Bureau of Labor Statistics. 2011 and previous years Current Employment Statistics. Employment, Hours, and Earnings - National. http://data.bls.gov/
(Accessed March 2012).
Chart 21f - U.S. Bureau of Labor Statistics. 2011 and previous years Current Population Survey. Unemployment Rates. http://www.bls.gov/webapps/legacy/cpsatab14.htm
(Accessed January 2012).