Construction Jobs in Maryland Likely to be Down in 2006
Rising interest rates and costs of material will likely spell an end to the record-setting boom in Maryland construction, including residential construction, in 2006. With 30-year fixed rate mortgages at roughly 6.4%, as compared with roughly 5.75% this time last year, and increases in material exceeding overall inflation numbers, that also means that jobs in the industry will likely decrease in the year ahead.
The decrease in construction will be especially hard in Maryland, where the industry accounts for 6% of Maryland’s Gross Domestic Product (GDP), as compared with a 4.5% national rate. Maryland is 8th among the 50 states in this category. While the building boom in Baltimore may seem to signal a hit to the city’s jobs, outlying counties will actually be hit the hardest. The construction industry accounts for only about 4% of jobs in the city, whereas Carroll and Harford counties are at nearly 16% and10%, respectively.