We continue to expect large declines in construction across the nation and across product types. We expect that real residential investment will drop another 17 percent in 2009 after dropping almost 18 percent in 2007 and more than 20 percent in 2008. While non-residential construction held up through 2008 we look for declines to begin this year and carry through 2010, as funding for the sector has all but evaporated. With such a bleak outlook for both components of the construction sector we do not see much hope for employment. Declines in aggregate employment will likely continue for some time in these sectors.

The best hope for employees in construction will come in late 2009 and 2010 when infrastructure investment is expected to pick-up as part of a fiscal stimulus package. While this will help stem the tide of job losses in the sector, there simply will not be nearly enough government work to offset the losses in the private sector. With businesses continuing to pull back on capital expenditures and consumers looking to cut back as well, the private side losses will far outweigh even the largest of stimulus efforts.