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Huge construction industry job cuts expected

Up to a third of U.S. construction jobs may vanish this year, Associated Press reports.

About two-thirds of the nation’s nonresidential construction companies plan layoffs this year, with most expecting declines in business next year, according to estimates by the Associated General Contractors of America, which represents about 33,000 companies. About 4.1 million people are employed in the industry, meaning about 1.25 million jobs could be lost if the dire forecast come true.

But the group also estimated that a stimulus plan that included broad spending on state and federal public works and infrastructure projects could reverse the decline for construction companies. The overall construction work force could grow by up to 25 percent, according to the forecast.

Non-residential means business and government. Businesses are having a hard time scaring up financing, and local governments are running deficits from here to breakfast because of declining sales and property tax revenue.

I know a lot of people are fretting over the huge deficits Obama is about to run up, but in the face of news like this, it seems preferable to doing throwing up our hands and hoping for the best.

More on this: Government officials’ forecasts on construction spending.

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Tom Mangan posted at 8:31 am January 9th, 2009 |

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