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Employment report may indicate better times ahead for construction industry

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Job losses in the U.S. nonresidential construction sector slowed in April, with 9,100 cuts compared with 10,600 in March, according to a May 8 employment report by the U.S. Labor Department. Since this time last year, employment in the sector has fallen by 87,700 jobs.

Meanwhile, the U.S. residential building construction sector lost 12,600 jobs in April, down from 17,500 cuts in March.

“While the pace of job loss continues to be brisk and unemployment will likely peak around or above 10 percent before reversing course, the employment report is consistent with a sea of other recently released economic data that foreshadow a slow economic recovery,” said Anirban Basu, chief economist with Associated Builders & Contractors Inc.

Basu said early signs of recovery, even before the economic stimulus package “has had a major impact,” imply that “better times” are ahead.

“For those in the nonresidential construction industry, this is welcome news,” he said. “Though recovery within many nonresidential construction segments remains months or even years away, the ongoing stabilization of the broader economy is consistent with the notion that demand for new construction will begin to emerge later this year and into 2010.”

Overall, national employment fell by 539,000 for the month. More than 5.2 million jobs, including nearly 1 million in the construction industry, have been lost during the past 12 months.

The nation’s unemployment rate stands at 8.9 percent, the highest level since September 1983.