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 https://www.bls.gov/opub/ted/2011/ted_20110103.htm (visited March 22, 2018).
Recent editions of Spotlight on Statistics
African Americans in the U.S. Labor Force
A look at employment and unemployment trends of African Americans from 1972 to 2016 and projected to 2026.
Industry on Tap: Breweries
A look at employment, wages, and job safety in breweries and producer prices for beer.
Differences in Parents’ Time Use between the Summer and the School Year
A look at how parents of school-age children spend their time in the summer and the school year.
Hispanics in the United States: Celebrating National Hispanic Heritage Month
A look at employment, earnings, consumer spending, time use, and workplace injuries and illnesses for the Hispanic or Latino U.S. population.