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90 Monthly Lab. Rev. 1 (1967)
Seasonality and Construction

handle is hein.journals/month90 and id is 995 raw text is: Seasonality and Construction New Government Policies and Further Use of Technological Advances Could Reduce the High Costs of Irregular Work ROBERT J. MYERS AND SOL SWERDLOFF* THE SEASONAL NATUR' of the construction indus- try not only causes considerable hardship for the 4.6 million workers I who gain their livelihood in the industry, but also affects the entire popu- lation by adding to the cost of living. After years of neglect, the problem is beginning to receive at- tention again as a source of economic waste and an obstacle in the campaign against inflation. For construction workers, seasonality means serious unemployment and loss of earnings. Peak operations in the summer and fall draw many thousands of workers into the labor force who can- Aot find employment in the industry during the slack of winter. This has resulted in high unem- ployment in the winter, thus making the industry's unemployment rate in recent years more than double that for the Nation. The hardship for irregular or seasonal workers in the construction industry sometimes can be over- stated. High wage rates and peak-season overtime c. ntribute to annual earnings that, although lower than those for other heavy industries, are some- what above the all-industry average. Many work- ers receive unemployment insurance benefits; some find winter jobs in other industries, and some treat the Winter months as a forced vacation and with- draw from the labor force. The unemployment insurance system is itself a victim of seasonality. Seasonal workers, particu- larly those in construction, regularly withdraw more funds than their employers contribute to State unemployment insurance, thus benefiting from a form of subsidy. The steady drain on the insurance funds by the seasonal industries limits the accumulation of reserves and thus reduces the ability of the funds to aid the long-term un- employed. Price of Instability The major burden of seasonality, iowever, falls on the consumer. Higher wages and overtime pre- miums in the busy season are part of seasonal operation as are excessive equipment costs and swollen overhead. These extra expenses are passed on to the public in increased housing costs, inflated taxes and fees, and more expensive business serv- ices. Of about $70 billion paid out annually for construction under contract, some $3 to $4 billion is attributable to the seasonal nature of the industry. A comprehensive study of seasonality is now underway in the Bureau of Labor Statistics. Pend- ing publication of the complete report, this article indicates the seriousness of the problem and possible steps to alleviate it. Extent of Seasonality Seasonality is becoming increasingly important to the nation's economic equilibrium since both wages and prices in the construction industry have *Deputy Commissioner of Labor Statistics and Chief, Dlvisiop of Program Planning and Evaluation, respectively. ,Of these 4.6 million some 3.3 million are wage and salary workers in the contract construction industry (i.e., in special- ised construction concerns doing work for other under contract), while the remaining 1.3 million include primarily regular govern- ment employees, and the self-employed. Construction workers on force account in other industries are not included in the 4.8 million. The problem of seasonal employment is greatest among the contract construction workers, since many of the others hold steady year-round jobs.

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