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Construction employment declined in 146 out of 337 metropolitan areas between November 2010 and November 2011, increased in 131 and stayed level in 60, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials noted that construction employment is likely to continue declining in many areas because of a planned 6.2 percent cut in federal investments in construction and infrastructure for the 2012 fiscal year.

"There is no avoiding the pain that comes any time the single largest purchaser of construction services cuts investments by nearly 20 percent in two years," said Ken Simonson, the association's chief economist, noting that the fiscal year 2012 federal construction budget will be 18 percent smaller than the same budget for 2010. "It will take a lot more private sector growth to offset declining federal demand."