In late March, the Employment Development Department of California released the state’s unemployment data, with numbers up through February 2009. Overall, this report paints a grim picture of California’s ecomnomic status, and in particular, the health of the construction industry. Here are a couple key statistics and I would like to discuss what they mean in regard to recovery:
- Percent difference in amount of construction industry employees between February 2009 and February 2008: -18.5%
- Unemployment by county:
Colusa = 26.6%
Monterey = 16.2%
Santa Barbara = 8.3%
San Luis Obispo = 8.1%
The point I would like to make first is, the -18.5% reflects where we are now with respect to the past, but says nothing in regards to present trends. Home sales numbers indicate that the California housing market bottomed in February, and started its gradual rebound in March (see my previous blog, “California Construction on Path to Recovery”). Given the direct correlation between the health of the construction industry and home sales, I would expect construction jobs to be returning very soon.
The second point I would like to address is the overall strength of the Santa Barbara construction and San Luis Obispo construction economies, at least with respect to most other California counties. True, the construction economy has slowed in these two counties, but for the most part these regions are in pretty good shape. What does this mean? It means that given the low point in the housing market reached in February, these counties are poised for a very quick turn around in 2009 and 2010 since their local economies do not require much in the way of resusitation. Santa Barbara and San Luis Obispo counties are very regions in which to be a construction contractor during the next 18 months.
President of jobtrio.com
Profiles and Reviews of California Contractors
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