Construction jobs in Mass. at 10-year low

Deep decline has many vying for same spots

Job losses are accelerating in every corner of the construction industry in Massachusetts, leaving thousands of people in a race to find work as the sharp economic downturn halts work on new homes, office towers, and retail stores.

Employment among construction workers is down by 23,000 jobs statewide, a reduction of 16 percent, reflecting a rush in layoffs as work has stopped on building projects across the state. As their prospects worsen, legions of carpenters, ironworkers, and electricians are being forced to compete for a dwindling pool of jobs.

In the last three months, the number of construction jobs has dropped by more than 10,000 positions statewide, or nearly equal to job losses at financial firms in the past year, according to state employment data. Overall employment in the industry stands at 120,400 jobs, the lowest level in a decade.

The sharp downturn has ended a prolonged building boom that was fueled by easy credit and a strong housing market. Now, constraints on lending are preventing developers from getting money to start work. In January, one building permit was issued in Massachusetts for a residential complex with five or more units, according government housing data. Homeowners are also feeling the pinch, delaying renovations and other odd jobs that have helped sustain construction workers during previous downturns.

"Building has just ceased. There is nothing happening," said Tim Fraser, president of Commonwealth Resources, a recruiting agency for the construction industry. "It's amazing how many good people are out of work. They have no interviews and no prospects."

Labor leaders said they are hoping for help from the federal government's $787 billion economic stimulus bill, which is expected to result in $500 million to $600 million in road and bridge improvements in Massachusetts. But government work is the only sector that looks promising.

Anthony Fedele, a journeyman carpenter for more than 20 years, said he rises at 5 a.m. to look for jobs. He's been out of work for seven months, and keeps getting turned away at local construction sites. For now, that's OK because his state unemployment benefits have been extended for another five months. But then what? He has four children under 14, and construction is as slow as he's ever seen it.

"People say it's going to start picking up, but I won't believe it until I see cranes start moving again," said Fedele, 45. "At this point, I'm just numb to it."

Mark Erlich, executive secretary of the New England Regional Council of Carpenters, said laborers like Fedele are being forced into prolonged unemployment because of the lack of debt available to help finance new construction.

"When jobs finish up, there's nowhere for people to go," Erlich said. "Historically, our members have survived times like this by renovating kitchens and doing odd jobs for family and friends. But nobody has money to do that right now."

Erlich said about 4,600, or 20 percent, of the union's 23,000 carpenters are out of work. He said that's the most since the early 1990s, when industry unemployment surged to more than 30 percent during the last prolonged recession, according to state data.

Since then, construction activity has been constant. In Boston, ironworkers, electricians, and carpenters were sustained by the $15 billion Big Dig, as well as the start of work on the South Boston waterfront, where developers initiated work on several acres of office buildings, condominium towers, and retail stores.

Today, the Big Dig is done and work on the waterfront is stalled. Steel is still rising at construction sites at Russia Wharf and Fan Pier, but work on those buildings started many months ago, before the economy fell into a recession.

Less than a mile away, in Downtown Crossing, the $700 million redevelopment of the Filene's block remains on hold. The developer recently said he still can't get a loan after cutting seven floors off an office and hotel tower planned on the site. The situation is the same in suburban communities along Route 128 and Interstate 495, where construction activity has slowed significantly after several years of constant growth.

At the union hall of Local 7 Ironworkers in South Boston, the slowdown is unnerving to members.

One recent morning, the union's business manager, Mike Durant was getting ready to attend the annual conference of the Massachusetts Building Trades Council in Plymouth, where he was expecting the usual optimism to mix with moments of despair.

"We're okay right now, but we need a lot of the projects that have been put on hold to get going again," Durant said "We're hoping the stimulus money will kick start infrastructure work.

Mike Kerin 42, a construction superintendent, isn't expecting to bounce back any time soon. He's been out of work since before Christmas, when he got laid off from F.L. Caufield & Sons Inc., a construction firm in Dorchester.

"If I'm not working, I'm not putting into my benefits and health insurance," said Kerin, who has two children. "If I don't get something shortly, my health insurance will run out."

Kerin has been working on his sister's house while he looks for permanent employment. He said competition for construction work has increased dramatically

"All we see coming are small jobs," said Kerin, who is a trustee on the executive board of his carpenter's union, Local 67 in Dorchester. "We're being told there is nothing major out there.

Fedele, the Somerville carpenter, said he plans to keep visiting work sites, hoping a job will shake loose. "You have to show your face," he said.

Fedele said he's been traveling in a circle, visiting jobs at the Massachusetts Institute of Technology, an office project in Brighton and, until recently, Harvard's construction of a $1 billion science complex in Allston. Work at that site has slowed dramatically. "That just shows it's hitting everybody," he said.

Casey Ross can be reached at cross@globe.com.