Construction (not manufacturing) has been the hardest hit industry by far

Despite being as tired as everyone of the economic doom & gloom being reported on the nightly news, I am continually fascinated by the way that unemployment is portrayed. It seems like there are a lot of case studies of how job losses are affecting Americans that focus on a laid-off financial services executive who's lost his job managing portfolios and his $450,000 lakeside mansion. Rarely, if ever, do we hear or read about who the unemployed really are by industry or demographic. So the purpose of this blog is actually rather self-pitying, as you'll see that construction (not manufacturing) has actually been the hardest hit industry by far!

According to the Bureau of Labor Statistics, unemployment in the construction industry hit 21.1% in March 2009 , which is 12.6% higher than the 8.5% general unemployment rate that you'll hear on the news and a full 8.9% higher than manufacturing (12.2%). While I could end the blog here, I don't think that these numbers have driven the point home; the question that begs to be asked is, if construction and manufacturing are dragging unemployment down so severely, what is boosting it up? After all, the overall rate is 8.5%. Well, you might, as I was, be authentically surprised to know that the March 2009 unemployment rate in the financial services sector was a mere 6.8%! (and only 5.8% in the segment that consists of banking, credit, securities, investing, insurance & funds!).

Now, I am not an economist or central banker, so it is difficult for me to make fact-based value judgments on how bad the banking/credit industry is, or how necessary it is that billions of dollars of our money are siphoned into their coffers. But in light of recent 1st quarter reports detailing massive and unexpected profits from banks , something smells funny. Massive political attention, low relative unemployment, profitability and huge taxpayer-funded subsidies/bailouts for the financial services industry sounds like financial bigwigs may be whispering a little loudly into the ears of Washington politicians.

Meanwhile, the people that actually do the work, the contractors on the ground, the machine workers, the general laborers, the middle class, the ones who spend their money on beer, sports, dining, cars, home improvement, leisure activities, are left at the behest of the free market. My friends, associates, and peers are included, relying on family and friends to help them through this challenging time. I am not suggesting that government provide for the comfort of all; the Soviet Union tried that experiment (e.g. Socialism) and it failed miserably. What I am suggesting is that, in this land where at least in the eyes of the government all men and women are created equal, we should all suffer equally, regardless of profession or skill set. It is an ethical transgression that construction and manufacturing workers are bailing out bankers and mortgage lenders (and yes, you pay tax even on unemployment compensation!).