Construction jobs on Maui declined 12 percent since March as the nation's financial crisis continues to drive a weaker housing market, according to the latest report by the University of Hawaii Economic Research Organization.

The significant drop in employment for the island's building industry, pushed the job count down by more than 500 to 4,500 since its peak in March.

“;Construction has ceased to be a growth engine for Maui's economy at a time when other sources of job growth have stalled,”; the report said. “;Maui employment has flat-lined and, given the global financial crisis, is unlikely to jump start in the near future.”;

Construction has fueled Maui's job market for the past five years so the downturn is troubling for the island's overall economy.

Compared to the other counties, Maui has seen disproportionate job losses in the industry. Since March, construction jobs on Oahu fell by 1 percent, while jobs on Kauai remained unchanged. The Big Island shed 4 percent of its construction job base, while Maui lost 12 percent.

Since January, building jobs on Maui have fallen at an annualized rate of more than 17 percent, according to the report.

Meanwhile, real building permits also have taken a substantial nosedive, signaling that construction jobs are likely to decline further. Maui county permits totaled $380 million in real terms at its peak in the 2005 third quarter, but has since dropped to $50 million in this year's third quarter.

The building sector contributed between 23 percent and 32 percent of new job growth on Maui in 2005, 2006, and 2007, though rising home and condominium prices, inexpensive financing and multiple luxury resort developments have waned over the past two years.

Tightening of the credit markets have further escalated the slowdown in the island's housing market.