Housing is showing solid signs of rebounding, while the government reports that residential construction jobs are shrinking. What gives?
The government may be undercounting construction crews who’ve taken on relatively new jobs, says Nigel Gault, economist at IHS Global Insight. The monthly jobs report is based on two surveys — one polling households, which determines the unemployment rate; the other businesses, which calculates the overall number of jobs added and lost.
Because builders typically hire subcontractors to do everything from painting to plumbing, many of those jobs may not be accounted for since they work for smaller and newer firms.
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