Construction employment declined in 99 out of 358 metro areas from March 2019 to last month as the coronavirus pandemic triggered the first shutdown orders and project cancellations, according to an analysis released by the Associated General Contractors of America today. Association officials urged federal and state officials to boost investments in infrastructure to help put more people to work amid rising unemployment levels.
“These new figures foreshadow even larger declines in construction employment throughout the country as the pandemic’s economic damage grows more severe,” said Ken Simonson, the association’s chief economist. “Unfortunately, the data for April and later months are sure to be much worse. In our latest survey, more than one-third of firms report they had furloughed or terminated workers—a direct result of growing cancellations.”
The largest percentage decline in construction employment between March 2019 and last month occurred in Laredo, Texas, which lost 19% or 800 jobs, followed by Lake Charles, La., which lost 18% (4,600 construction jobs). Lake Charles had the largest numerical decrease, followed by New York City, which lost 3,500 construction jobs (2%).
Construction employment increased over the year in 205 metro areas and was flat in 54. The largest percentage increases in construction employment occurred in Lewiston, Idaho-Wash. (23%, 300 jobs), followed by Walla Walla, Wash. (22%, 22 jobs). The largest numerical gain occurred in Dallas-Plano-Irving, Texas (10,200 jobs, 7%).
Association officials noted that new infrastructure investments would help offset some of the sudden and dramatic declines to demand for construction that have taken place since the start of the coronavirus pandemic. They noted, for example, that 68% of construction firms report in the association’s April 20-23 survey that they have had projects cancelled or delayed during the past two months.
“New infrastructure funding will put more people back to work in high-paying construction jobs in communities throughout the nation,” said Stephen E. Sandherr, the association’s chief executive officer. “New infrastructure funding will also give a needed boost to manufacturing and service sector firms that supply construction employers, all of which have been hard-hit by the coronavirus and the related economic shutdowns.”
View AGC’s coronavirus resources and survey. View comparative data here. View the metro employment data, rankings, highs and lows and top 10.
Related Stories
Market Data | Apr 4, 2016
ABC: Nonresidential spending slip in February no cause for alarm
Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. The figure is a step back but still significantly higher than one year ago.
Market Data | Mar 30, 2016
10 trends for commercial real estate: JLL report
The report looks at global threats and opportunities, and how CRE firms are managing their expectations for growth.
Market Data | Mar 23, 2016
AIA: Modest expansion for Architecture Billings Index
Business conditions softening most in Midwest in recent months.
Retail Centers | Mar 16, 2016
Food and technology will help tomorrow’s malls survive, says CallisonRTKL
CallisonRTKL foresees future retail centers as hubs with live/work/play components.
Market Data | Mar 6, 2016
Real estate execs measure success by how well they manage ‘talent,’ costs, and growth
A new CBRE survey finds more companies leaning toward “smarter” workspaces.
Market Data | Mar 1, 2016
ABC: Nonresidential spending regains momentum in January
Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. Spending increased in January in 10 of 16 nonresidential construction sectors.
Market Data | Mar 1, 2016
Leopardo releases 2016 Construction Economics Report
This year’s report shows that spending in 2015 reached the highest level since the Great Recession. Total spending on U.S. construction grew 10.5% to $1.1 trillion, the largest year-over-year gain since 2007.
Market Data | Feb 26, 2016
JLL upbeat about construction through 2016
Its latest report cautions about ongoing cost increases related to finding skilled laborers.
Market Data | Feb 17, 2016
AIA reports slight contraction in Architecture Billings Index
Multifamily residential sector improving after sluggish 2015.
Market Data | Feb 11, 2016
AIA: Continued growth expected in nonresidential construction
The American Institute of Architects’ semi-annual Consensus Construction Forecast indicates a growth of 8% in construction spending in 2016, and 6.7% the following year.
