by Calculated Risk on 9/15/2005 01:02:00 AM

The Independent reports: Construction industry suffers biggest fall in jobs since 1993

The number of construction workers has suffered its steepest fall for more than 11 years, according to figures yesterday that were the latest to highlight a slowdown in the property market.

About 38,000 jobs were lost in the sector over the three months to July, the biggest fall since a cull of 56,000 in December 1993 when the housing market was suffering the hangover of the crash, the Office for National Statistics said.

Construction firms slashed their demand for new workers, with a 4,700 cut in vacancies, the largest for any sector measured by the ONS. The figures follow a series of downbeat statements from housebuilders such as Bovis, Taylor Woodrow and Berkeley.

The Construction Confederation said the slowdown in growth was driven entirely by a fall-off in private-sector demand.

Back in May I asked on Angry Bear: When will Housing Slowdown?

Perhaps we can look at the UK for guidance on timing. ... The housing boom has apparently ended, and the retailers are already feeling the impact.

And now the next step: job losses in the UK construction industry.

Back in May I guessed that the US was "about 6 to 8 months behind the UK". That would put our housing slowdown (and retail slowdown) in the 2nd half of this year. Unfortunately the US economy is probably more dependent on housing and the construction industry than the UK. When housing slows in the US, I expect employment growth to take a significant hit - probably following the UK pattern - with layoffs starting about 6 months after housing clearly slows down.