by Calculated Risk on 10/12/2006 12:34:00 PM

The Press Democrat reports: 1,300 jobs lost in Sonoma County's housing slowdown

The housing industry, which propelled Sonoma County out of recession three years ago, is now shedding jobs as builders, mortgage brokers and real estate companies feel the impact of the slowdown.

The sector, which employs one in six workers in Sonoma County, lost 1,300 jobs in the three-month period ending June 30, according to a new study.

It could lose 2,000 more jobs before the shakeout is expected to end next year, reducing employment to 28,700, the study forecasted.

The job losses - the largest since the housing market was in retreat in early 1990s - have been deeper than anticipated, even in an industry accustomed to employment swings as housing cycles run hot and cold.

The effect on the economy will be magnified because many of these workers earned $60,000 to $70,000 or more a year during the housing boom, far more than the typical worker in the county.

This is probably just the beginning of the housing related job losses.