Construction jobs at risk without stimulus: group

NEW YORK (Reuters) - The U.S. construction sector stands to lose 30 percent of its jobs in 2009 unless Congress approves a stimulus package soon after President-elect Barack Obama takes office, a contractors' trade group warned on Thursday.

A slowdown that began in the U.S. housing sector has spread to a broad swath of nonresidential construction projects, the Associated General Contractors of America (AGC) trade group said in its annual forecast.

"While the last few months have been difficult for the economy, they've been simply devastating for the construction industry," AGC Chief Executive Steve Sandherr said on a conference call with reporters.

More than three-quarters of its 33,000 member firms report declines in activity in highway work, building projects, utility construction, as well as levees and other water projects, he said.

Two-thirds of nonresidential construction companies expect to lay off some portion of their workforce in the next six to 12 months, the group said.

U.S. construction employment, which peaked at 7.8 million, in 2006, is down by about 780,000 people, or 10 percent, the group said.

CALLING FOR STIMULUS

Fast passage of a stimulus package would help stem or even reverse job losses, the AGC said.

"With a stimulus, construction companies can get more people to work and more money into the economy in a way that can immediately boosts our economy," Sandherr said. "Without the stimulus, construction companies will cut jobs and slash spending and continue to be among the hardest-hit sectors."

The group cited a survey in which 85 percent of nonresidential construction companies said they would either cancel planned layoffs, or hire new workers, if states embarked on new stimulus-funded infrastructure projects. Most would buy new equipment and most would be able to begin work on projects within a month, the group said.

Quick passage is key, it added, because cold weather in the northern parts of the United States leave a narrow window for outdoor work.

Obama is seeking approval by mid-February of his plan for tax cuts and public-works spending that could total nearly $800 billion.

It is not yet clear how much of the money would go toward funding infrastructure projects and the trade group declined to estimate how much spending to expect, or even to say how much it is hoping for.

The group said it wants funding to renovate federal buildings and upgrade schools, and tax incentives to retrofit buildings to become more energy efficient, and to build new energy facilities. It is also calling for the creation of economic crisis zones, where job losses are greatest, that would provide tax exemptions for construction and renovation projects.

(Reporting by Nick Zieminski; Editing by Andre Grenon)