Building Slump Costs Many Jobs

The recession and an accompanying slump in the real estate market have hit the county’s construction industry like a ton of prefabricated roof trusses. More construction workers have been laid off than those in any other industry, including the troubled defense sector, as employment declined 17% from 71,400 in June, 1990, to 58,500 last February and March.

Sales of new homes for the first six months of the year were off 20% from the same period a year ago, and the number of permits issued declined as well. The dollar value of new permits issued was lower for all types of construction, with only single-family homes holding fairly steady.

But the news isn’t all bad. The most recent employment figures show slight month-to-month increases, suggesting that the worst may be over.

New Home Sales % change, Jan.-June, 1990 to Jan.-June, 1991: -20.3% Total new homes sold, January to June 1987: 5,368 1988: 5,280 1989: 3,619 1990: 3,174 1991: 2,531 Source: TRW Marketing Services

Building Permits Issued

Jan-June Jan-June Jan-June Jan-June Jan-June Category 1991 1990 1989 1988 1987 Single-family 2,179 2,243 4,171 7,309 5,218 Multifamily 1,925 5,640 4,719 6,889 9,187

Source: Construction Industry Research Board

Permit Valuations (in millions of dollars)

Jan-June Jan-June Category 1991 1990 Single-family 370.8 403.2 Multifamily 137.0 345.5 Office 93.1 134.2 Industrial 21.4 45.9 Retail 68.3 114.9

Source: Construction Industry Research Board Researched by KATHIE BOZANICH / Los Angeles Times