Click on graph for larger image.
The graph shows New Home Sales vs. Construction Employment since 1970.
Note that "Construction Employment" from the BLS includes all types of construction, not just residential construction.
Historically Construction Employment continued to rise for a year or more after the peak in housing transactions. Other housing related employment categories, like mortgage brokers, have already seen some layoffs - but based on historical data, construction will probably stay strong for most of 2006 unless sales fall dramatically.