by Calculated Risk on 4/21/2006 05:56:00 PM

The LA Times reports: Construction Decline Means Loss of Jobs

California employment fell in March for the first time since last spring, the state reported today, a drop due almost entirely to a decline in the construction sector as the housing boom comes to a close.

And the first ripples of the housing slowdown are beginning to be felt in the larger economy.

Over the last four years, soaring house prices generated widespread benefits. Flush homeowners tapped into their newfound equity to pay for new cars, remodeling jobs and lavish vacations, all of which spread the wealth around.

Now, fewer homes are selling, which means builders aren't working overtime to make more of them. That means they need fewer workers — 9,400 fewer in March.

That's one explanation for the overall net drop of 10,800 payroll jobs in March. Another is more modest: it rained a lot in March. This might have worked to keep construction employment down, said state finance chief Howard Roth.

From the California Labor Market Information Division:

Sectors with increased employment, in order of job gain, were:
Leisure and hospitality (6,500);
Information (3,300);
Financial activities (1,500); and
Natural resources and mining (100).

Sectors with decreased employment included:
Construction (9,400);
Trade, transportation and utilities (4,100);
Professional and business services (3,100);
Government (2,200); other services (2,100);
Manufacturing (900); and
Educational and health services (400).