Construction employment declined in more than nine out of 10 metro areas from March to April, a time when industry employment typically increases in most locations, an analysis by the Associated General Contractors of America of new government data shows. Association officials said new federal transportation funding could help restore many lost construction jobs, but cautioned that new legislation released today by House Democrats includes new regulatory measures that could undermine the broader goals of the measure.
“Today’s employment report shows how few areas were left unscathed by April’s unprecedented job losses,” said Ken Simonson, the association’s chief economist. “Sadly, our latest survey shows project cancellations are escalating, making further job losses inevitable unless there is funding for widespread new projects.”
The economist said construction employment declined between March and April in 326, or 91%, out of 358 metro areas and increased in only 20 areas (6%). Industry employment was unchanged in 14 areas. Over the previous 30 years, 75% of metro areas added construction jobs from March to April, on average, while 12% of metros shed jobs.
New York City lost the largest number of construction jobs for the month: 75,900 jobs or 49% of the March total. There were also extremely large construction job losses in the Seattle-Bellevue-Everett, Wash. area, 44,200 jobs or 41%. Construction employment fell by half or more in three areas: Montgomery County-Bucks County-Chester County, Pa. (-54%, -27,200 jobs); Warren-Troy-Farmington Hills, Mich. (-52%, -26,100 jobs); and Brockton-Bridgewater-Easton, Mass. (-50%, -2,300 jobs).
Simonson noted that more respondents in the association’s latest survey reported an upcoming project had been canceled in May or June than in April, implying that further job losses are likely. One-fifth of respondents reported a project scheduled to begin in May had been canceled, as did nearly one-quarter (24%) of respondents regarding a project scheduled to start in June or later, compared to 16% in April.
Association officials said new federal infrastructure investments in roads, bridges, transit and rail systems, like those proposed in a new transportation bill released today by House Democrats, would provide a needed boost to construction employment in many parts of the country and support a broader economic recovery. But they cautioned that new programmatic and regulatory requirements in the measure could undermine some the bill’s potential economic benefits. They urged Congressional leaders to work in a broad, bipartisan manner to rapidly pass a measure that expands highway capacity, improves bridges, builds transit and rail systems and supports long-term economic growth before current legislation expires.
“It is encouraging to see House Democrats proposing a significant increase in investments for transportation infrastructure,” said Stephen E. Sandherr, the association’s chief executive officer. “With over 40 million people unemployed and construction jobs declining in most metro areas, Congress needs to ensure that new, sustainable, investments bring as many people back to work as possible to help improve our aging highway, transit and rail systems.”
View AGC’s coronavirus resources and survey. View the metro employment data, rankings, map, highs and lows, and top 10.
Related Stories
Contractors | Apr 19, 2023
Rising labor, material prices cost subcontractors $97 billion in unplanned expenses
Subcontractors continue to bear the brunt of rising input costs for materials and labor, according to a survey of nearly 900 commercial construction professionals.
Data Centers | Apr 14, 2023
JLL's data center outlook: Cloud computing, AI driving exponential growth for data center industry
According to JLL’s new Global Data Center Outlook, the mass adoption of cloud computing and artificial intelligence (AI) is driving exponential growth for the data center industry, with hyperscale and edge computing leading investor demand.
Healthcare Facilities | Apr 13, 2023
Healthcare construction costs for 2023
Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.
Higher Education | Apr 13, 2023
Higher education construction costs for 2023
Fresh data from Gordian breaks down the average cost per square foot for a two-story college classroom building across 10 U.S. cities.
Market Data | Apr 13, 2023
Construction input prices down year-over-year for first time since August 2020
Construction input prices increased 0.2% in March, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices rose 0.4% for the month.
Market Data | Apr 11, 2023
Construction crane count reaches all-time high in Q1 2023
Toronto, Seattle, Los Angeles, and Denver top the list of U.S/Canadian cities with the greatest number of fixed cranes on construction sites, according to Rider Levett Bucknall's RLB Crane Index for North America for Q1 2023.
Contractors | Apr 11, 2023
The average U.S. contractor has 8.7 months worth of construction work in the pipeline, as of March 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.7 months in March, according to an ABC member survey conducted March 20 to April 3. The reading is 0.4 months higher than in March 2022.
Market Data | Apr 6, 2023
JLL’s 2023 Construction Outlook foresees growth tempered by cost increases
The easing of supply chain snags for some product categories, and the dispensing with global COVID measures, have returned the North American construction sector to a sense of normal. However, that return is proving to be complicated, with the construction industry remaining exceptionally busy at a time when labor and materials cost inflation continues to put pricing pressure on projects, leading to caution in anticipation of a possible downturn. That’s the prognosis of JLL’s just-released 2023 U.S. and Canada Construction Outlook.
Market Data | Apr 4, 2023
Nonresidential construction spending up 0.4% in February 2023
National nonresidential construction spending increased 0.4% in February, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $982.2 billion for the month, up 16.8% from the previous year.
Multifamily Housing | Mar 24, 2023
Average size of new apartments dropped sharply in 2022
The average size of new apartments in 2022 dropped sharply in 2022, as tracked by RentCafe. Across the U.S., the average new apartment size was 887 sf, down 30 sf from 2021, which was the largest year-over-year decrease.
