AGC sees more job losses in US construction

A survey by the Associated General Contractors of America (AGC) trade association says 65% of US non-residential construction companies expect to lay-off workers in the next six to 12 months if the business climate does not improve. Companies expect to have to cut an average of 30% of their workforce.

The survey was carried out among more than 1000 companies active in the non-residential construction sector. As well as the gloomy outlook, more than 70% of respondents said they had already cut jobs in 2008, laying off an average of 35% of their staff.

Stimulus

These results were based on the assumption that the business climate will not improve. However, the AGC also asked what impact extra federal funding for projects would have on employment. More than 85% of companies said this would lead them to hire new workers. On average, headcounts were expected to rise +25% if such state-level stimulus packages were enacted.

Stephen Sandherr, chief executive of the AGC said, "Unless the business climate changes significantly and soon, the construction sector will continue to experience the kind of devastating job losses and crippling declines in business activity that will undermine efforts to end the recession."