New housing starts and applications for permits both fell sharply in May as the government's tax credits for homebuyers expired. The news overshadows positive news on manufacturing and wholesale inflation fronts. A lull in new home construction generally translates to a spike in joblessness, as construction fuels growth in a variety of industries. From manufacturers of appliances to lumber yards to the makers of paint and stucco, the effects of a slowdown in construction are felt across the economy. The Cutter Bits irony is that while slow construction cuts jobs, many are citing the unemployment rate as a chief reason for not buying a new home.