The impact of the U.S. housing bubble and bust on employment, 2001–09
January 03, 2011
From 2001 to 2006, nonfarm payroll employment in residential construction increased by 29.1 percent, considerably faster than the 12.7-percent growth in the construction sector as a whole. In contrast, from 2006 to 2009, nonfarm payroll employment in residential construction declined by 36.6 percent, while employment in the entire construction sector decreased by 21.5 percent.
The effects of the housing bubble were not limited to the construction sector. From 2001 to 2006, employment in cement and concrete product manufacturing and in construction machinery manufacturing grew by 5.1 percent and 9.0 percent, respectively. Employment in the real estate credit industry and the mortgage and nonmortgage loan brokers industry ballooned by 52.0 percent and 119.5 percent, respectively.
As the housing bubble deflated, industries that heavily depend on demand from residential construction began to suffer considerable losses in employment. From 2006 to 2009, employment in mortgage and nonmortgage loan brokers and in real estate credit decreased by 54.5 percent and 44.0 percent, respectively. Wood product manufacturing (−35 percent) and cement and concrete product manufacturing (−24.4 percent) also experienced losses in employment.
These data are from the Current Employment Statistics program. To learn more, see "The U.S. housing bubble and bust: impacts on employment" (PDF) in the December 2010 issue of the Monthly Labor Review.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, The impact of the U.S. housing bubble and bust on employment, 2001–09 on the Internet at http://www.bls.gov/opub/ted/2011/ted_20110103.htm (visited October 21, 2016).
Recent editions of Spotlight on Statistics
Workplace injuries and illnesses and employer costs for workers’ compensation
Workplace injury and illness data and the costs to employers for workers’ compensation in natural resources, construction, and maintenance occupations.
A look at the future of the U.S. labor force to 2060
Projected long-term trends in the growth, size, and composition of the labor force.
Union membership in the United States
Historical trends in union membership among employed wage and salary workers; union membership by a variety of demographic characteristics.
A look at healthcare spending, employment, pay, benefits, and prices
Spending on healthcare, current and projected employment in the industry, employer-provided healthcare benefits, healthcare prices, and pay for workers in healthcare occupations.
Self-employment in the United States
Trends in self-employment by various demographic and socioeconomic characteristics, including both the unincorporated and the incorporated self-employed, as well as data on paid employees who work for the self-employed.