Construction Outlook

Construction Outlook Update
March 2010

Declines in nyc construction employment continue

January 2010 Jobs Total Is Lowest in 58 Months
Average Annual Earnings Fell in 2009

New York City's construction industry produced 106,500 jobs in January 2010, its worst showing in 58 months, according to employment data analyzed by the New York Building Congress.

While construction employment typically dips during the winter months, an analysis of recent year-over-year numbers provides evidence that the decline is attributable to more than seasonal factors. At 106,500 jobs, construction employment is down 12 percent from January 2009 (121,300 jobs) and 16 percent (127,500) from January 2008.

These employment numbers include the men and women who are directly involved in the physical construction of buildings and infrastructure, including contractors, skilled labor and specialty trades. The numbers do not include a relatively small number of construction workers who work for government agencies, nor do they include architects, engineers and other off-site workers.

In October 2009, monthly construction employment dropped below 120,000 for the first time since February 2007, and has declined in each month since.

New York City construction industry employment reached a peak of 136,900 jobs during the waning days of the building boom in August of 2008. While the January numbers represent a drop of 30,000 from that 2008 peak, the actual drop in overall employment is less pronounced given that construction employment perennially spikes in the warm, dry months of late summer and ebbs in winter.

Average earnings for all New York City construction workers dropped to an estimated $63,300 in 2009, down from $68,800 in 2008 and $65,800 in 2007, though higher than 2006 ($61,700). According to the Building Congress, the drop in wages is explained in part by declines in the use of overtime pay.

"These numbers are troubling since they speak directly to the human impact of the decline in building activity," said Building Congress President Richard T. Anderson. "The construction industry has long been one of the best sources of stable, middle class employment for native as well as foreign-born New Yorkers. With more than 100,000 workers employed currently, it still is a strong generator of good jobs, but obviously, a lot of hard working men and women are currently on the bench."

Added Mr. Anderson, "As much as possible, we need to ensure that federal stimulus dollars are put to work quickly on shovel-ready projects and that government is working closely with the private sector to ensure that residential, office and institutional development projects are able to move swiftly as demand rises and the credit markets open up."

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